SERIES: Mini-corps

A fair amount of my professional work experience is from C2C contracts as a full-time, on-premise contractor. I’ve formed an LLC and used S-Corp filing status to ‘pay myself’ as a W2 employee of my own LLC while working these contracts. The S-Corp approach has helped me minimize the tax impact of being self-employed and otherwise wasn’t too different from being a regular W2 employee.

However, in an effort to protect workers in California, particularly those working for Uber/Lyft, AB 5 was passed making it much more difficult to be classified as a contractor legally, practically eliminating 1099 contracts in California for software engineers. 

This article goes over a variety of reasons why I think contractors, especially C2C contractors, are underutilized by tech startups today, starting with why they are needed more than ever due to the pandemic.

• PART 1: The CTO Dilemma
• PART 2: Delegation & Optimization
• PART 3: Flexibility
• PART 4: Scalable & Replaceable
• PART 5: Choices