SAS CONSULTANTS

Sheep in Wolf’s Clothing By Gary McQuown Data and Analytic Solutions, Inc.

Disclaimer The following information is general in nature and intended for informational purposes only. It is not to be construed in any way as financial or legal advice. You should consult with a trained professional familiar with the laws and regulations of your area for specific advice.

Questions What is a SAS “Consultant”? Why consider (not) becoming one? What are the Pros and Cons? The Fine Print?

SAS Consultants An individual that provides a “SAS” service to another for profit. “Oldest Profession”

Employee vs. Independent Contractor 20 Rules To Determine Employee Status IRS Revenue Ruling “Microsoft Ruling”

In General Employee: Regulated and Controlled by Employer Independent Contractor (Consultant): Independent and Self Controlled

WHY ??? Money Power / Control Warm Fuzzes

Pros Higher Income Write Off Business Expenses Greater Flexibility Interesting Activities Lack of Hierarchy Independence Unlimited Potential Cons Lower Income or Loss Business Expenses Uncertain Schedule Non Billable Tasks Lack of Support Greater Responsibility (binding non compete) Unlimited Failure

Income Revenue Rate * Billable Hours Expenses Taxes Supplies (software) Professional Transportation Other Rates: SCONSIG.COM SAS SALARY SURVEY

Professional Expenses Insurance (Professional Liability, General Liability, Errors and Omissions, etc.) Legal (Contracts, Incorporation, Problems) Accounting (Taxes, Book keeping, Billing) Marketing, Training & Development (SUGI, SESUG, NESUG & Classes)

Non Billable vs. Lost Hours Hours Marketing Accounting Book Keeping Networking Training Administration Holidays Vacations Sick Leave Travel Between Jobs Lack of Work 40 Billable Hours = 40 + ??? Actual Hours Worked

Wolf or Sheep “Expect half of the employees to hate you before you arrive” “Hope the other half don’t hate you before you leave” Roll Offs and Restrictions First in line for : Blame and Layoffs “Family First” “Truth and Honesty”

The Fine Print? Legal Protection/ Contracts Job Availability, non competes Corp to Corp, 1099, W2 Head Hunters Benefits (write offs, 401K, Keogh, IRA) Growth (personal and professional) ( second oldest profession )

Incorporation Protection, Benefits and Cost Doing Business As = Small Limited Partnership = Moderate Chapter S = Significant Chapter C = Greatest

Types of Consultants Bench Warmers Probably Unwise to Incorporate Fire Fighter Possibly Unwise to Incorporate Builders Unwise NOT to Incorporate

When in Doubt DON’T

Frequently Asked Questions How do I get jobs? Will I be able to get jobs? Do I have to use Head Hunters? What contract will I use? Where will I work? What will I do? Will I make more or less? What happens if I fail? (ICCA)

Thank You Consultant’s Handbook