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In response to the comments on this forum urging people to start a business, who's to say that we haven't?
Each of us offers a certain set of skills or level of expertise to other businesses. That is the service we are providing. Isn't that essentially what a business does; offers goods/services to other businesses?
So I'll go as far as saying that we are all micro-businesses that that offer our services to other businesses. We may not be 1099 or LLCs, but we're ultimately doing the same thing as any of them are doing. So please, stop telling me that us that we should start a business, because if we're applying for work, we already have.
I'm also very tired of people saying the solution to everything is to "start your own business if you don't like it." That sounds spiteful. That's like saying "if you don't like the way we do things, do it yourself." Your response is creative and I like it, but well, not quite there. The employer has the ultimate control. We are numbers working on an assembly line. Our labor is the commodity. They fire us, that's it. The clients are theirs, not ours. If I am "my own business" than the clients are mine, not my boss's. If I leave, the clients should go with me, not stay with the boss. That's what happens with a 1099 - the clients go with me wherever I go. They are loyal to me, not the boss. Now, if you bring in clients to your boss, if the boss fires you, the clients will stay with him, not leave with you. So how does that make you the "business?" The only true, legally recognized business is 1099, LLC; or a corporation. That is what the courts recognize and will enforce. Imagine if I go to court and present your argument. I will be laughed out of there. Why pretend? Let's be realistic. If someone tries to screw me, I need to be able to protect myself. I want recourse.
I'm also very tired of people saying the solution to everything is to "start your own business if you don't like it." That sounds spiteful. That's like saying "if you don't like the way we do things, do it yourself." Your response is creative and I like it, but well, not quite there. The employer has the ultimate control. We are numbers working on an assembly line. Our labor is the commodity. They fire us, that's it. The clients are theirs, not ours. If I am "my own business" than the clients are mine, not my boss's. If I leave, the clients should go with me, not stay with the boss. That's what happens with a 1099 - the clients go with me wherever I go. They are loyal to me, not the boss. Now, if you bring in clients to your boss, if the boss fires you, the clients will stay with him, not leave with you. So how does that make you the "business?" The only true, legally recognized business is 1099, LLC; or a corporation. That is what the courts recognize and will enforce. Imagine if I go to court and present your argument. I will be laughed out of there. Why pretend? Let's be realistic. If someone tries to screw me, I need to be able to protect myself. I want recourse.
That's when you become a contractor and tell the client you'll do the service for less money and more efficiency than your previous employer. Besides, the only difference between me and someone who's a 1099 or LLC is exactly that; how they file their taxes at the end of the year. I could just as well go off and start a business as a contractor/specialist in my field, offering my services to other businesses. As you can see, there's an extremely fine line between a contractor/business owner and an employee.
In some fields, there is a finer line than in others. But then as a 1099, you pay a lot more for health and other benefits, and I don't believe you qualify for unemployment or worker's comp. Some people believe you actually pay more income taxes than if you were an employee. You end up paying the employer and employee portions. I understand you can write stuff off but how useful is that really, if everything else costs you more? I think it depends on the field we're discussing. I worked in real estate as a contractor and I like it for some obvious reasons. However, it cost me a lot more than I actually made.Competition was just mad.You can't do that business clean.
Svatos, I see where you are going with this and you actually bring up a very good point. Though, I wouldn't really call it a "business" as much as a "brand". When it comes to putting ourselves out there, we are more of a brand while employers are like consumers wondering, "Why should I go with Brand B instead of Brand A? Does it have 10% more experience? What about extra strength? Is it more reliable?"
That's when you become a contractor and tell the client you'll do the service for less money and more efficiency than your previous employer.
In some fields, that works out nicely - in creative businesses, some blue collar and probably IT/computers. But I know in other traditional fields, the client is usually loyal to the boss. If you call and try this scheme on the client, he will tell the boss and you will be fired. This happened to someone I kind of knew many years ago.
I can't say your idea has never crossed my mind, it has several times in the past.
The motive is similar. Service for profit. But becoming an employee has it's limitations.
1) You're at mercy of an employer
2) You have all your eggs in one or two baskets
3) Your profit expansion is limited to your salary
4) You take up a job rather than create jobs
5) No residual income
6) Your 401k is typically limited to a measily $16.5k opposed to the $49k maximum
7) Additional tax benefits
Just to name a few.
There's nothing wrong becoming an employee, if that's what you want and it's working out for you. But if it's not working out, it's worth considering other options.
In response to the comments on this forum urging people to start a business, who's to say that we haven't?
Each of us offers a certain set of skills or level of expertise to other businesses. That is the service we are providing. Isn't that essentially what a business does; offers goods/services to other businesses?
So I'll go as far as saying that we are all micro-businesses that that offer our services to other businesses. We may not be 1099 or LLCs, but we're ultimately doing the same thing as any of them are doing. So please, stop telling me that us that we should start a business, because if we're applying for work, we already have.
You are really stretching the definition of a business in a way that's not entirely ethical. It would be one thing to say you know how to set up PC's and servers, and know how to install software. To suggest that you have or run an IT business because you know how to install Microsoft Word is stretching the truth.
You are really stretching the definition of a business in a way that's not entirely ethical. It would be one thing to say you know how to set up PC's and servers, and know how to install software. To suggest that you have or run an IT business because you know how to install Microsoft Word is stretching the truth.
My skills and expertise are the services that I sell. I'm not sure where ethics come in to play here, but only you fully understand your thought process.
The point I'm trying to make here is that thought an employee is not technically a business, you're essentially doing the same thing. Perhaps NJBest phrased it best in that, "The motive is similar. Service for profit."
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