Need suggestion / help to clear my confusion

Guys,
I work as a contractor in A-B-C model. A is my H1/GC sponsor and C is the client. Client might(I didn't ask) be ready to get me as a full-time employee but I like working as a contractor(not sure why but just...) with A. So instead of asking to join as full-time I asked my manager if they can move contract to my sponsor A. He said he doesn't have any problem and can talk to management.

Now my confusion(again assuming that legally it's possible and no contract issues):

1: A thought sprung up in my mind that instead of transferring to A why not start my own LLC(only I as employee and owner) and contract with client or work self-employed contractor.
I think I will have expenses of about 7-10%. Can anyone shed more light on this. Want to make sure if it's really worth going through the hassel of starting and managing it for myself. Else I can just stick to A-C.

2: Are there any major benefits(not just monetory but other) joining as full-time employee.

3: Joining B is my last option.

gc0907 - my 2 cents:

Employment with C would mean much more security, less pressure and hopefully more benefits. Downside would be - less excitement. Routine work and low monetary growth.

Contract with C through your LLC would mean the opposite of the above plus remember you then have to pay your own SS taxes. So assuming your rate would be 100 dollars per hour, your billing would be 200K per year. However if your current salary already is 140K then in all likelihood your total package is 140K + 401K + bonus + medical insurance + employer paid SS contribution. Generally that would be pretty close to 180-200K. Besides you may be then spending your own money for travel.

Plus side of course is unlimited potential to increase your business and you can add another consultant through your LLC.

If I had the opportunity - I would go LLC way even if it meant short term monetary hit.

Quote:

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Originally Posted by gc0907

Guys,
I work as a contractor in A-B-C model. A is my H1/GC sponsor and C is the client. Client might(I didn't ask) be ready to get me as a full-time employee but I like working as a contractor(not sure why but just...) with A. So instead of asking to join as full-time I asked my manager if they can move contract to my sponsor A. He said he doesn't have any problem and can talk to management.

Now my confusion(again assuming that legally it's possible and no contract issues):

1: A thought sprung up in my mind that instead of transferring to A why not start my own LLC(only I as employee and owner) and contract with client or work self-employed contractor.
I think I will have expenses of about 7-10%. Can anyone shed more light on this. Want to make sure if it's really worth going through the hassel of starting and managing it for myself. Else I can just stick to A-C.

2: Are there any major benefits(not just monetory but other) joining as full-time employee.

3: Joining B is my last option.

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Q,
Thank you for your inputs.

I am on kind of a percentage basis with A and in that case there aren't really any benefits except group insurance. With GC and steady client for several years, now I have a better negotiating position. Moving to A and cutting B will be a substantial hike. So I will talk to A and see what benefits they can offer. With moving to C my base salary will go down and on the whole(base+all benefits) I doubt they will pay anything more than their overall yearly bill.

You are right, even I think that if I have my own company, I can have other consultants (I think at least one or two of my friends :D). It's really tempting but feel reluctant.

One point I came across with currently staying with A is it would be helpful while securing a home loan(which I am planning this year). A steady job with same employer. Hope that's not entirely a myth.

These are again my thought waves. I want to have a clear picture before I start talking to A or C.

gc0907 - that is NOT a myth. It is completely true. So if you are planning to buy a home - it might be a good idea to do so before you go on your own in terms of employment.

Quote:

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Originally Posted by gc0907

Q,
Thank you for your inputs.

..One point I came across with currently staying with A is it would be helpful while securing a home loan(which I am planning this year). A steady job with same employer. Hope that's not entirely a myth.

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Thanks Q.
Let's see how all the legal non-competence contracts between A-B and B-C goes. Any firsthand experience or knowlege on that?

Quote:

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Originally Posted by qesehmk

gc0907 - that is NOT a myth. It is completely true. So if you are planning to buy a home - it might be a good idea to do so before you go on your own in terms of employment.

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gc0907 - no first hand experience. Sorry. But I think I know that if C is a big fish, A & B can complain all they want... but they won't risk the relationship over one employee going over to C.

Quote:

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Originally Posted by gc0907

Thanks Q.
Let's see how all the legal non-competence contracts between A-B and B-C goes. Any firsthand experience or knowlege on that?

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I didn't get the last risk part exactly but A,B or C none are big fish. I know C i.e. client wants me. My manager is all fine. The only thing is he isn't sure of legal stuff.
I will get HR of both in touch and see what they come up with.

Thanks.

Quote:

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Originally Posted by qesehmk

gc0907 - no first hand experience. Sorry. But I think I know that if C is a big fish, A & B can complain all they want... but they won't risk the relationship over one employee going over to C.

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Thought will update you guys.

Finally accepted Client's offer to join them full-time. They just gave middle vendor(B) a notice that they are ending the contract without giving a crap what the contract said since they were in a cost-cutting mode. So I had to make a compromise on their relatively OK offer.
Economically I would have made more money staying as a consultant with A but decided to go for stability/settling down rather than jumping around.

EDIT: Looks like it was too early for me to say that. Now Vendor(B) has brought up contract clauses and threaten to sue if client hire's me any other ways. And client is kind of now re-evaluating the situation. So now my case is like "Dhobi ka Kutta" :)