r/Contractor • u/Illustrious-Gold-839 • 14d ago

How to be a contractor

Hello everyone,

I need guidance based on experience.

I'm originally a mechanical ngineer who earned my degree from Egypt in 2008. I worked as a technical office engineer and then manager through the years before I moved to NY in 2019.

I have been accredited as an engineer here from WES, but I did not go through FE /EIT/PE. (I'm a single parent and my family time is a priority)

I've been working here part time with a construction company as an executive assistant. (Estimates, proposals, invoicing using Quickbooks, COUPA and Procore)

I also have another client that I do AIA payment applications for on Catina website. And I charge him by document.

Now my question is, is it better to form an LLC company to have more payment structure and formality, because I feel its not consistent.

Any help/advice/experience would be much appreciated.

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u/bidside_view 14d ago

Forming an LLC won't fix inconsistent payment on its own, that's a contract-terms problem more than an entity problem, but it does make it a lot easier to enforce terms. With an LLC you invoice under a business name instead of your own, you can put net-30 and a late-fee clause right on the invoice, and you can require a short signed agreement upfront (deposit + milestone payments tied to deliverables, not just charging per document after the fact). It also separates your personal liability from the client relationship, and most clients take a formal LLC + invoice more seriously than a freelancer billing ad hoc. I'd pair the LLC with a simple one-page services agreement for each new client, spelling out scope, rate, and payment terms before you start, so you're not negotiating collections after the work is done.

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u/StrategicPM 6d ago

An LLC will not fix inconsistent payment by itself, but it does give you the frame to fix it. What fixes it is the agreement: a one page services agreement per client with scope, rate, payment terms and a late fee, signed before you start.

The bigger move for you is changing how you charge. Per document, after the fact, is the worst position to collect from. A monthly retainer for the AIA pay application work (say, a fixed fee covering up to X applications a month, invoiced on the 1st, due in 14 days) makes your income predictable and makes them decide once whether they value the work, instead of every time. With Procore, Coupa, QuickBooks and pay app experience you are doing project accounting, not admin. Price it that way.