[LRUG] Switching from solo contractor to being a development company

Andrew Stewart boss at airbladesoftware.com
Thu Feb 16 04:55:22 PST 2012

On 16 Feb 2012, at 13:29, luke saunders wrote:
> At some point I would quite like to run a development company, which
> might handle several projects at a time, employ other developers etc.
> But it's not clear how to best approach making the leap, when I am
> employed by clients they usually want to employ me and only me, if
> they need other developers or a designer they'll find them themselves.
> So probably the companies I have relations with now would not be my
> target market then.

I would think this quite likely.  Companies who are used to hiring contractors probably wouldn't want to switch to hiring a development company -- and vice versa.

However I expect you could ease your transition by incorporating a company, of which initially you are the only employee, and asking anyone hiring you as a contractor to hire you through your company instead of directly.  In theory it shouldn't make any practical difference to them; it would just be a procedural change for their accounting people.

> Has anyone made the jump from solo contractor to development company?
> And if so do you have any advice on how to achieve this?

I suggest just diving in: incorporate a company and get going.  Presumably you already have an accountant, so they could advise you.  E.g. you may need to insure yourself slightly differently.

Andy Stewart

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