Background: I am a software engineer. Throughout my career I have been a salaried employee.
My brother's company has some imminent deadlines and they could use some extra help with things that I have a lot of experience with; I recently discussed with his boss about possibly doing consulting and she seemed very excited about the idea. I already told them that while I'd love to help them with 10-20 hours per week, I'm not interested in leaving my current job nor moving (he and his company are in a different state).
The question: I have never "applied" to work as a contractor before, and I'm wondering what is different about the process. A few questions:
Resume: My brother asked me to give their HR department a resume. I think of myself more as a vendor than as an employee, is this request typical for contracting?
- How much should I quote my hourly rate to be? I'm not asking for a number, I'm asking for the markup from what my time is worth, the fact that I need to pay extra for social security, etc. In other words, should I ask for 20% more? 50% more? Other?
- Should I try to negotiate a bonus in advance? I know they are really pressed by deadlines, should I ask for something like "if we get done by this calendar date, I'd like a speed bonus of X% more". Is that sort of thing normal or should it just be a simple rate?
- If I need to buy a commercial software tool, how do these costs get calculated? Should I just roll this into my hourly rate? Should I expect them to pay for it and expect to give them the license when the project is complete?
- I want to buy a new laptop. I was going to do this anyway even without this consulting gig. My brother's boss seemed skeptical about giving me VPN access on a personal laptop, but it didn't seem like a dealbreaker. How should this factor into the negotiations?
- They want me to form an LLC for myself. The fees are reasonably high to do this. Should I attempt to build this into my hourly rate as well?
Is there anything else I should know?
P.S. If this question is too broad or off topic, please let me know in the comments and I will do my best to edit to address these issues.