Red Box Items for Being a Contract Pilot

[JetDriver2000]

I'm just getting into the " contract pilot" side of things.
Does anyone have any guidance / how to info on being an independent contract pilot? i.e..
Insurance
Incorporate/ vs. not?
Other issues that might be important. ..


Thanks in advance for the replies..
s.a.l..

 

[falconpilot]

I did it for the last 8 months. Insurance isn't a big deal because all Ive had to do in the past is fill out a pilot questionaire for whoever it is ill be flying for.. (you know the form... total time, pic, sic, etc....) Tax wise, I always planned 25% for every dollar made would have to go towards taxes.. Thats probably a little heavy, but fighting the IRS is a losing battle. I always tried to be fair with my daily rates. Dont get me wrong I wasn't below average or anything but I always tried to be fair and negotiate. If this is going to be your only source of income, you don't want to piss anyone off right off the bat. I found a full time job recently due to the fact that my currancy in all my types was about to run out. Recurrent training is not cheap. (I am sure you know that already) It is, however, a write off. But its a large upfront expense. I was covering 3 different types and school was very expensive. Good luck

 

[JetDriver2000]

Falconpilot,

Thanks...at least that is some info. I hear you on "recurrent" costs. So far things have been going pretty smoothly. I just wonder if incorporating ..is worth the hastle. But, I would like to do it , if it protects my family from any issues down the road.

s.a.l.

 

[falconpilot]

Most guys I know that are contracting full time go with a L.L.C. I never looked into it very deeply. Compare the two see what you come up with. I know that it will definately help you out on the taxes.

 

[f-5]

Plan on 25% pay to the irs, 30% if you need a few dollars on the side at the year end. Just make sure the 14 hr day is in effect, anything past midnight is another day rate.