How to Sub contract for other companies

Many businesses require certain types of licensing with strict stipulations and requirements to getting these licensing. Sub contracting laws still allow you to practice your trade or craft as a professional through other licensed contractors. Like anything else, their are requirements.

Difficulty: Easy

Instructions

Things You'll Need:

• "DBA" , insurance, EIN number, business checking account, Sole proprietor exclusion forms and Sub contractor agreement.

1. Go to your local city clerks office to get a DBA. This is a license to conduct business under your business name. Costs vary most municipals it only costs $12. Most of them do a names search for you so you don't use an existing business name.

2. Insurance is necessary for you and the contractor. If you are uninsured the contractor will have to hire you as an employee and is responsible for matching taxes and insurance. Generally required is liability and workmen compensation if you have additional employees. Some contractors also require bonding for theft protection. Most basic insurance policies start out at $750 a year. Bonding is generally $100 a year.

3. A business checking account is required so that you can be payed through your business. Shop around for this Business checking account. Some are free others are going to require a deposit and monthly fees. You can open this account with a DBA and your social security number. I recommend filing it under your Employer identification number as soon as you get one.

4. An EIN or employer identification number is a social security number for your company. This is the IRS way to identify your company as a separate entity. You can get one instantly online at this link http://www.irs.gov/businesses/small/article/0,,id=102767,00.html. I will also include this link in resources under Employer Identification Number. This is a free service from the IRS. Don't waste your money paying for it somewhere else on the internet. It is an almost instant process.

5. For anyone hiring a sub contractor you will need a Sub contractor agreement, I_9 form, and a sole proprietor exclusion form for tax an insurance audit purposes.

6. Sub contracting can be used in two ways, to bring more work to you as well as using other like minded professionals on your jobs. You save money
   and make more money at the same time.

Tips & Warnings

• Look for work as a sub contractor, with other similar professionals. If your an architect look for work with other architects or builders. There are a ton of places to look for contract work, start in you phone book under theses titles. Insurance agents, property manager, builders, real estate agents, Family restaurants and hospitals. Oh lets not forget about the government sector, you can pick up a lot of commercial work here.
• Sole proprietor exclusion Forms are to be signed with Sub contractor agreements or an Insurance audit will make you responsible for paying contract labor as employee wages.
• Keep a copy of Sub contractors insurance policies and sole proprietor exclusion forms on hand for insurance audits.

Resources

• Employer Identification Number Free

[skyedanzer]

on 7/22/2009 Terrific information!