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In response to
"Spam: the customer is a business, I'm trying to winnow down an hourly rate based on my income needs -- nm"
by
Beryllium
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My rule of thumb for clients -- as a starting point -- was take the annual salary you want, divide by a thousand, and double it.
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That is your hourly rate. If you want to earn $75,000 a year (before taxes), charge $150 an hour. That is, assuming you are willing to work 40-50 hours a week.
You aren't going to bill every hour you work. If you're lucky, you'll bill about 50% of your time spent working the first year or two on your own.
Assuming you work 50 weeks a year, and bill about 20 hours a week, at $150 an hour, you'll net $150,000. You'll end up using about $50,000 of that to pay all sorts of taxes, plus you'll need health insurance and retirement.
You'll need about $25,000 to run the business. That assumes you're working out of your home. If you are renting an office space, factor that in as an additional cost. You'll need to pay for business licenses, insurances, a lawyer, accountant (not a bookkeeper, you're doing that yourself), equipment, software, a phone, a website, etc.
Even if you do a lot of that yourself (like you can certainly do your own website), every hour you're doing something on your own is an hour you don't bill.
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Responses:
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That would be $200/HR CDN. That can't be right. -- nm
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Beryllium
Nov 23, 19:50
15
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Yeah $200/h it probably about right. Although you could go with a daily rate.
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Karl_S
Nov 23, 22:31
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When your plumber came out, what was their labor rate? -- nm
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z
Nov 23, 22:14
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No wonder that looks high ... that would be 400K/yr
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Beryllium
Nov 23, 20:45
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It's a rule of thumb. :-) Alter as you wish, but make sure you list everything you're going to have to buy when you're self employed.
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ReluctantCynic
Nov 23, 20:03
7
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contractors get paid more, yo (but I have no idea if that's industry-reasonable). -- nm
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mafic
Nov 23, 19:56
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I mean, once they incorporate a Canadian entity it would switch to a normal full time position ... -- nm
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Beryllium
Nov 23, 19:51
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Alternately, divide by 500. -- nm
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David
Nov 23, 19:48
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(health insurance won't be an issue) -- nm
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Reagen
Nov 23, 19:40
3
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