New to IC (Independent Contracting)

[VA AV8R]

After my last job more or less fell apart and a frustrating job search I ended up doing the self-employed thing for the time being. The plus side was I am working with a company that paid for me to get typed in a mid-size jet with no strings attached; the down side is... I've never done this before and I'm concerned. The contract pay for that gig isn't enough, and, although a likely outcome down the road is salaried status right now I need to work more to make it.

I've looked over the typical sites (contract pilot.com, avcrew, etc.) but am looking for other ways to solicit myself and also for guidance on the ins and outs of contracting (tax issues in particular). If any of you with experience in this area can help I would appreciate it.

 

[ksu_aviator]

When I was working full-time and flying contract work, almost all of my contract work came from word of mouth. The best thing you can do is socialize with people that have that type of aircraft. The second best thing you can do is to make a few unsolicited phone calls. Most likely they'll say no. In fact, I can guarantee they'll say no. What will impress them is how you handle the rejection. I would always respond with "I knew it was a long shot, but would you mind if I send you my resume (or card, whichever you have) just in case something comes up?"

Most people love to get a salesman off the phone and they will do about anything to get rid of you. By getting permission to send them a resume they got rid of you but said yes at the same time. In the end, they will probably call you for a trip. 90% of the time getting a job, especially a temp. job, is not about being the most qualified it is about being the easiest to hire.

 

[bizjet800]

135 contract work is all but done. Each company (or yourself) will soon have to put you through an initial type rating on their training program, even if you are current!

That said, for 91, make a lot of calls, knock on all the doors you can and get to know everyone, piss off no one.

 

[VA AV8R]

I hear you. My last job involved was 135, even though I flew 90% 91. I don't care to deal with that again, unless I have to.

135 contract work is all but done. Each company (or yourself) will soon have to put you through an initial type rating on their training program, even if you are current!

That said, for 91, make a lot of calls, knock on all the doors you can and get to know everyone, piss off no one.

 

[gret]

If you know any line/customer service managers at the FBOs you've been to, give them a heads up. They hear everything and if you've treated them right, they will be a big help.

 

[Bleeds On]

If you know any line/customer service managers at the FBOs you've been to, give them a heads up. They hear everything and if you've treated them right, they will be a big help.

X2. They're the ones that set me up with my current job and I didn't even ask. They're in on everything so they'd be my first point of contact. I'd be far more receptive to talking with someone that a trusted CSR,etc. has already prescreened for me.
For taxes, set up a simple LLC and I believe you'll get a tax ID with it. It doesn't do much for you other than make the taxman happy. What you will want to push for is getting on each company's list of insured. Otherwise you're hanging your a$$ out there. The onus for everything else tax related is more on the company hiring you. If they're outright paying Flightsafety for your recurrent, I hear the IRS looks down on that. Maybe pay for it yourself and issue a one-time "membership fee" to the company??? Someone correct me if I've missed something or misspoke.

 

[dhc8fo]

Tell EVERYONE, and I mean EVERYONE, what you fly and that you are available. Depending on the plane, you could get really busy really fast once the word starts spreading. Wouldn't hurt to do some research and find businesses in your area with the type of plane you fly and track down a contact person and cold call them. It work...it is a big pain in the butt, but it does work.

 

[dhc8fo]

The onus for everything else tax related is more on the company hiring you. If they're outright paying Flightsafety for your recurrent, I hear the IRS looks down on that.

I have never experienced this. I have paid for my own recurrent and also had companies pay for it. Maybe I am just missing your point?

Everything business-related is a tax expense if you run it through your business. Medical renewal, training, uniforms, mileage, hardware/software, etc.

Have the businesses pay your LLC or corp and then give yourself a paycheck. You will have to pay your own taxes, which blows, but it is what it is.

BTW, I am not giving tax advice...just regurgitating it from my own CPA so your results may vary

 

[gret]

I think he is saying that the LLC should pay FlightSaftey and then receive reimbursement from the client.

Abiding by the independent contractor rules is tough so you need everything in your favor.

 

[surveypilot]

...
For taxes, set up a simple LLC and I believe you'll get a tax ID with it. It doesn't do much for you other than make the taxman happy. ...

Actually, you will more than likely still be doing taxes as a flow through to your personal tax return. This means that you will still be on your SS number instead of a Federal Tax ID #. I have a Federal Tax ID #, but the current W9 instructions simply have you listing your SS # if it is a flow through LLC. The only reason that I can think of to have a Federal or state tax ID number is if you are paying sales tax because you are also selling merchandise for some reason, or if you have employees.