I think what needs to be considered is not only the overhead (which of course you MUST cover) as well as the expected value your work provides to the client(s), but also their ability to pay such costs in any given economy. For example, a small business will find it far more difficult to cover your fee than a multinational organization. Therefore I believe that no matter what field of dicipline your consultation role covers, it is ESSENTIAL to understand the entirety of the company’s workings (their costs and profits) to set a rate appropriate to their means of paying. In my field of business, that’s not so difficult given that 99% of my past clients have hired me to automate large portions of their business to save literally thousands of man-hours per year. With that in mind, my rate could be equal to as much as 75% of those man-hours, and it’s still more reasonable for the client to pay than the entirety to “data entry clerks” manually performing the same task.

As I see it there is no “1 answer suits all” in the consultancy industry. Certainly with respect so some of the comments I have read, you should definatley NOT accept a lower rate than you could be earning as a 9 to 5 employee in a similar industry. That (in my view at least) falls into the category of exploitation.

Additionally (again with regard primarily to my experience in the IT industry) you MUST factor in for if you can complete a project faster than your competitors. In my line of work with automation systems, I can develop insanely complex software solutions in a miraculously short space of time (completing one such project in just 25 hours). To charge the same rate as a competitor who would take 6 or more MONTHS to achieve the same result leaves you out of pocket, and to an extent exploited by the “employer”.

If you don’t know what value you can provide to any given client compared to the average of your competitors, you need to figure that out BEFORE looking for consultancy work.

Never under-value yourself, but balance your value with the client’s ability to afford you. Once you figure that out, you can truely call yourself a consultant.

For me, I’m based in the UK and have been offered a consultancy contract by a prospective client in the USA. I am well aware that US laws work differently to here in the UK, and thus I will be getting a specialist lawyer to peruse the contract before I sign it. I shall be charging the prospective client for this service whether or not the contract is signed. In my opinion this is a fair expectation. Should the client require me to perform an on-site evaluation of their business (or should that be a requirement) this will be accounted for within the contract, and the client covering any such related expenses.

The question I have is… do I require any sort of legal documentation to perform consultancy services for a client within the US? Technically I’m not employed by their company, and thus a “work permit” should not apply.

Google searching has left me a little perplexed as to the answer, as so many ambiguous conflicting results provide no solid answer.

Would I be best set by consulting the specialist lawyer with this question?

If I provide consultation services to a US client, am I expected to pay US taxes as well as my income tax to the British IRS?

I am also faced with having to research what consultants in “similar” fields charge in the US (since it’s an unfamiliar enconomy to me) though since my field is incredibly niche (there are VERY few people in the world as versed in automation systems as myself) I do have something of a monopoly when setting a rate. Again, I shall remain ethical and base my rate on relevant enconomic factors vs the expected ROI the client expects from this project.

Sorry if this seems more like a rant than a useful comment, I just like to convey the suggestions I provide with a relevant background to show how I reached them.

I hope people find this useful and perhaps can provide a little insight into the questions I have asked.

Any direction from anyone?

Very short assignments (half a day) should be very expensive but most consultants use them as opportunities to pitch for more substantial work so there is no guidance.

Regarding discounts and lowball offers that some correspondents have encountered. Do not set precedents: if you want the work, take it, keep your original rate but offer free days for a limited period. That way, you keep your integrity whilst getting your knees under the table.

I am happy to discuss this or related topics with anyone either here or off-line.

Bill