If you are an independent consultant, you are your own boss, working for yourself and keeping what you earn. Sounds great, right? It can be, but it comes with more risk. You will have to find your own work, pay your own benefits and pay self-employment tax. You are on the hook for your laptop, software, transportation, etc. (though you do get to deduct them from your taxes).
When you work for a firm, you are an employee of a larger machine. You are responsible for your day job and your daily tasks. The firm will pay your base salary and bonus, provide health care and benefits as well as provide you with the tools and training you need to perform. Firms have sales and support teams, HR, accounting and other necessary operational teams handling the “day to day” while you focus on your project work. They will bill you out at higher rates than you will find as an independent consultant, but most of those rates are kept by the firm to assist in paying your salary as well as operations costs required to run and grow a firm.
Are you interested in starting a career in consulting? Be sure do read the full book Jack of all Trades Master of Some; An Introduction to Consulting available on Amazon.
