My first client is a bankruptcy attorney. We agreed that he would pay me @@ dollars for each bankruptcy rather than an hourly rate. I approached him last week about doing other VA services for him i.e. invoicing, following up on non paying clients, general organizing and some paralegal work. He would like me to work for him but states he cannot afford my standard hourly rate. I would really like to continue working with this client but since he is so disorganized and has very poor business management skills, I don't think he will be able to send me any regular business.

He is considering his options for paying me to help him manage his business better. My options are to accept a much lower rate than my standard or have him hire me as a p/t employee. I am considering the tax consequences of this situation as I know that whatever rate I am paid, there will be tax consequences for me.

Does anyone have any other ideas about handling this situation?
Janet
eBusinessOnlineSupport

Hi Janet,
I have a client [who's my first!] who I charge for a small amount less than my standard charge - but this is purely because I visit my client [who I happen to work with anyway!] and any money he pays me [at the moment!] goes BACK into my business - i don't pay myself for it....

I think that you should mention it to him that if you do become his employee then he'd also be forking out extra money just providing you with a job as well as paying your tax, etc. I'm not too entirely sure about the tax situation in the US but my safe bet is to have a proper chat about it and you can also try to negotiate a 'safe charge' which is different to what your standard charges are....

I hope I helped... and good luck!

Rgds
Julia

__________________
Julia Neal ...because we ♥ admin!
http://julianeal.wordpress.com

Hello Janet,

I am not sure as to what amount he is paying you per bankruptcy petition but if it is under $XXX.XX (3 figures) then you are getting ripped off.

Each state charges differently for bankruptcy petitions. Please join the VBA group to learn more about what you should be getting paid and how to manage your petition processing charges.

Most attorney's do not have a problem with paying 3 figures as they are making 3 to 6 figures, depending on the state.

For instance California attorney's charge $750 per petition. So, you would charge about a quarter of that.

Andrea~

__________________
Action Jackson Virtual Assistant|

Andrea,

I know from other bankruptcy paralegals the attorney fee for a Chapter 7 & Chapter 13 to the client. The charge is over $1000.00 so my rate is in the 3 figures. Luckily, one of friends suggested what I should ask for and receive that is a fair amount. I am receiving a fair amount for my time. Thanks for the input!!

Janet
eBusinessOnlineSupport