Background: I'm just a couple weeks into starting as a freelance consultant. I'm on a contract at the moment that's like a 20hr/week retainer as a sole prop. I'm planning to incorporate as an S-corp.
Client wants to move me from 20hrs/week to full-time (still remote-work). I currently don't have other clients, but was planning to use the other half-time to build up marketing/blog. Can I suggest a 40hr/week retainer contract through my consulting company? Is that legal for the client under the definition of a full-time employee from the IRS?
What are the pros and cons of this move for the client and myself? For the client: they wouldn't need to pay payroll taxes, benefits, etc. Downsides is that they may feel I'm not as committed to the company. Any other downsides for them?
For myself: I would pay for my own benefits, pay my own taxes, etc. HOWEVER, I quit my previous fulltime because I wanted some freedom and to build this consulting business out, so joining on as fulltime at this client's company is something I really want to avoid. I guess this post is more that I want to understand the downsides for the client and be able to address them when I speak with them.
Additional detail, they want to move me to fulltime then hire a couple more people and have me lead a team.