questions regarding contract flying

[jetwash]

I have a a few questions for anyone doing contract flying.

1. Is it better to set up as a Sole Proprietorship or Corporation? I will be working on the side from my normal job and don't expect to work more then 2 or 3 days a month.

2. What type of legal protection do you have for yourselves? Do you have a contract you give to your clients or do you buy extra insurance on your own?

Any comments or suggestions welcome.

 

[Seadogrun]

I think (and I'm no expert) that the Corp. will be better for income tax purposes. That's why most do it. I don't know about the liability issues.

 

[blzr]

Yes, the corp would be the way to go. I got DRILLED with taxes again this year because I was too lazy to set one up. My tax rate was nearly 40% for the contract flying I did.

 

[jetwash]

Do you carry your own insurance or do you have them sign a contract stating that you are free of all liabilities and are working under their insurance?