At the May 2018 PMINJ Programs meeting, the Career Networking LCI hosted Frank and Mark Boffa of Boffa & Company CPAs. The father and son pair provided practical advice on starting one’s own consulting firm. They discussed the incorporation options in light of the new federal income tax law, which favors flow-through entities, such as the LLC.

The Boffas focus on small, local businesses — they keep accounts for local dry cleaners, restaurants and consultants. Their office houses both employees and independent consultants who rent space and services during the tax season. They had stories of success and hiccups consultants have met with over the years.

Given the reality of businesses shedding workers, Frank and Mark recommended that all professional service workers, such as Project Managers have a “pocket LLC.” That is, they recommend being prepared in case an interview turns into a contract negotiation.

You don’t need a lawyer or a CPA to form an LLC. You can follow the process laid out on this href="http://www.nj.gov/treasury/revenue/gettingregistered.shtml NJ state webpage. Eventually, you’ll need a business bank account to keep your business earnings separate. Tax-wise, you will only need one extra form for the LLC – no separate filing needed.

Among the advantages of working through an LLC is being able to write off expenses – it’s worth getting some professional advice here – and being able to use umbrella insurance for liability insurance (assuming that’s okay with your client). The “disadvantage” is that you will have to pay the employer’s share of Medicare and social security. This (roughly) 14% additional tax is called the “self-employment tax.” 

In terms of pricing your services by hour or week, you should at minimum include the self-employment tax. However, the better way, according to Frank, is to look at what it costs the customer to hire someone, and then work down from there to make your services bargain-priced, while still giving yourself a maximum income.

Those were some of the highlights – for more information, download the Boffa’s handout.

You may have heard a few things about Artificial Intelligence (AI) over the past year or two, programs that have beat human beings in games like Jeopardy, Poker and GO; AI being used in voice assistants such as the Amazon Echo, Apple Siri and Google Home; AI enabling self-driving vehicles. Believe it or not, that is just the TIP of the iceberg. AI is currently being applied to a WIDE range of tasks and spaces, including finance, project management, medicine, education, sales and more. But the most important question of all - can Artificial Intelligence replace YOU? What do you need to know - and more importantly - how do you Keep Pace with this important, disruptive and rapidly evolving technology? The answers may surprise you. In this brand new presentation for 2018, George will:

• Highlight the depth and breadth of AI current state
• Introduce the Keep Pace AI Disruption Gauge
• Apply his 10 Steps to Keep Pace with Artificial Intelligence
• Identify activities that are indicators of AI replacement
• Introduce the Keep Pace Technically Savvy Formula, and
• Identify resources you can use TODAY to learn more about AI

The presentation will also include George's AI mascot, Aiden, who will provide commentary throughout the presentation. All told, this will be an engaging, entertaining and action packed presentation you won't want to miss

As Project and Program Managers you're probably finding Agile Coaches and Scrum Masters on your teams. If you ever wondered how these roles can improve team performance you may not want to miss the Agile LCI meeting in May. During this meeting Bob Phillips (MBA, PMP, ICE-AC, PMI-ACP, and CSP) will help you gain a deeper understanding of what these roles can do for your team.

Success in the gig economy means knowing how to manage projects as a business. If each future engagement will be a standalone - a 'gig' - would it be appropriate for you to contract with employers directly? Considering your expertise, structuring yourself as an LLC enables you, as a gig-employee, to carry lower liability insurance and may provide tax advantages.

Frank and Mark Boffa, of Boffa & Company CPAs, will explore the benefits and challenges of forming your own business entity:

• The basics of forming an LLC - Limited Liability Company
• Strategies employed by successful consultants
• Changes in the law that impact tax planning
• Changing business requirements and the impact on human resources
• Accounting solutions for consultants and small businesses

Frank Boffa has been providing individuals and businesses with reliable tax, accounting and consulting services that provide peace of mind and business stability for four decades. Son Mark studied ethics at Drew University and earned an MBA at Rutgers. Mark is managing the family business as accounting becomes more automated and projectized.