Consulting and Business Licenses in WA (contractor, university, income)

[ukiyo-e]

I realize I probably need to get some professional advice about this, but I was hoping someone might have some experience in the matter which would help me. I'm moving to WA state about July 1, 2010 and will be continuing to work for my current boss, but as a freelance consultant. (I'm a science writer/editor.) We're trying to figure out if there is any difference whether I'm hired as a consultant or a vendor. Her University would require me to have a business license to reimburse me as a vendor, but not as a consultant.

I'm specifically wondering if I need a business license to bill as a consultant, and whether I would owe some sort of business tax if I have one. I realize there is no state income tax, but I'm not sure about business taxes in WA and how and upon whom they're levied.

Thanks for any info anyone can give me!

[msingh]

You have several options:
1. You can set up a Consulting Business and she can hire you as a consultant. This would require among other things applying for a Business license and paying taxes.
2. You can set up an independent contractor relationship with the University. If you choose this option you will want to set up an agreement laying out the terms of the relationship including: payment, term, dispute resolution, ownership of Intellectual Property, etc.
3. One other option is that if you are an editor you could set up a work made for hire scenario which is more or less the same as the Independent Contractor relationship.

I suggest that you retain legal counsel to advise you more thoroughly on this matter.


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[ukiyo-e]

Thank you, that is just the kind of information I am looking for. I agree, I need some professional advice, but this helps a lot. Since I'll be working on individual projects for the University and not full-time, the independent contractor arrangement might be the best and easiest way to do this. When I get moved, I'll check into this more thoroughly, but at least I know some available options now.

[StealthRabbit]

this site might help, They offer free classes usually on Weds and have DOR counselors to help you. I prefer to give them a bogus company name, so as not to raise flags till I get my process fully defined. It varies for each of my 4 businesses (one of which is an independent consultant)

http://dor.wa.gov/content/workshopsandeducation/

[ukiyo-e]

Originally Posted by StealthRabbit

this site might help, They offer free classes usually on Weds and have DOR counselors to help you. I prefer to give them a bogus company name, so as not to raise flags till I get my process fully defined. It varies for each of my 4 businesses (one of which is an independent consultant)

Workshops & Education

Thanks, that's a big help, too. I'll look into one of the classes when I get moved up there.

Looking at the sample B&O tax return form on that site, it looks like the tax rates aren't too onerous.

[msingh]

I'm glad I could help. Please feel free to follow up with me when you make the move. Good Luck with everything.

[paulyue1]

I am planning to do a contract work with a local company, can anyone let me know the step to obtain a business license

[mikejessy]

Nice information

[Jake5353]

The information is really interesting. I'm sure they'll come in handy.

[StealthRabbit]

Originally Posted by Jake5353

The information is really interesting. I'm sure they'll come in handy.

I see the links are broken (after 13yrs)
https://dor.wa.gov/open-business
https://dor.wa.gov/education/events-...ources-webinar

Good idea to chat with SCORE https://www.score.org/seattle

or SBDC https://wsbdc.org/

These are free resources for Small Businesses. (and you can choose a mentor to suit you, including nationally). SBDC has a LOT of research available (Customers, competitors, local spending on your product,... a very rich resource)