Path: utzoo!attcan!utgpu!jarvis.csri.toronto.edu!mailrus!ames!ncar!asuvax!mcdphx!mcdchg!ddsw1!ddsw1!karl
From: karl@ddsw1.MCS.COM (Karl Denninger)
Newsgroups: comp.sys.ibm.pc
Subject: How do I become a consultant?
Message-ID: <[252ba786:5948.1]comp.ibmpc;1@ddsw1.MCS.COM>
Date: 5 Oct 89 20:00:03 GMT
References: <7185@sdcsvax.UCSD.Edu>
Lines: 81

>Item 5948 (0 resps) by barber at odin.ucsd.edu on Thu 05 Oct 89 10:35
>[Terri Barber]    Subject: How do I become a consultant?
>
>How does one become a computer consultant?
>
>I've noticed that many supply houses around here give discounts to
>consultants and dealers.  Some sell only to dealers and consultants.
>I know that a dealer can identify himself as one with a dealer's
>license number, but how about a consultant?
>
>I remember reading an article suggesting one could use his/her
>computing skills to do free-lance consulting work by leaving calling
>cards with computer dealers.  I'd thought that since I've got a light
>load this quarter, I could do something on the side to earn a little
>extra cash...(and getting a dealer's price on my next VGA 386 system
>would be nice too :-)

Well, a few things first.

To become a real consultant, you need to file a DBA (doing business as) form
with the local county.  This identifies you as a business.  It is needed if
you intend to get a bank account, work under a trade name, etc.  It is also
needed for you to get a reseller number, which you will almost certainly
need for the vendors (Tax number).  Most of these vendors will require a
>company< check, so you will need the company bank account (and thus the DBA).

Then you apply to the state for a resale permit.  This makes you a merchant
in the eyes of the state, and authorizes you to collect sales and use tax.  
Along with that certificate comes the requirement to file timely reports of
your business activity -- these reports are required monthly in most places,
and you >must< file them even if you do no business during that period.

That's pretty much it, unless you need to also register with some city or
state agency.  Most communities don't require this, unless you're going to
open a store front or something.  

Doing these things gets you two items you will need to purchase equipment 
at "dealer" pricing:

	o A company checkbook
	o A sales tax resale certificate

You'll probably have to start out buying things on COD Certified check
basis; this is normal.  Once you establish yourself and work with a vendor
for a year or two you may be able to get some kind of terms arranged.

Now some soapboxing:

	If you're doing this just to get a system at a reseller's discount,
	what you are doing is technically called fraud.  You are coercing
	the seller into granting you a privilege you would not otherwise
	have by misleading means.  If you really do intend to do consulting
	and earn money at it, fine.  The posting above implies that your 
	primary reason for doing this is to "get a deal on your next system."

You should also know that having a resale permit (which you will >need< to 
get the reseller discount from vendors) also requires that you file monthly 
sales tax reports, even if you do NO taxable work during that month! The 
paperwork nightmares are somewhat nasty, and if you forget you will be 
hit with penalty charges (and interest if you owe anything).

For a one or two PC purchase it's not worth the hassle.  Only if you are
truly going to become a consultant, and do it for the money (not the savings
on a 386 or two) is it worth your time and trouble.  I used to do this before 
becoming a part of this corporation, and it was a pain in the neck.  For 
a long time I didn't have that resale certificate, because I knew what kind 
of work was involved, and knew that if I screwed up it would be real 
expensive.  More expensive than the savings on a 386 machine or three.

One more thing.  Don't even think of cheating the state revenue people (state
equivalent of the IRS).  They are not nice people to mess with.  Remember
too, that you will have to pay sales tax on the gear if you keep it for your
own use and don't resell the equipment.

Become a consultant if you really want to help people with their computer
work and make some money.  Don't do it just to defraud a seller who wouldn't
otherwise sell to you at all.

--
Karl Denninger (karl@ddsw1.MCS.COM, <well-connected>!ddsw1!karl)
Public Access Data Line: [+1 312 566-8911], Voice: [+1 312 566-8910]
Macro Computer Solutions, Inc.		"Quality Solutions at a Fair Price"