RE: [wg-review] Clarifications requested from BoD, Staff, NC, TC,Chair prior to co-Chair elections

[Roeland Meyer <rmeyer@mhsc.com>]

> From: Eric Dierker [mailto:ERIC@HI-TEK.COM]
> Sent: Thursday, January 11, 2001 3:42 PM
> To: Judith Oppenheimer
> Cc: wg-review@dnso.org
> Subject: Re: [wg-review] Clarifications requested from BoD, Staff, NC,
> TC,Chair prior to co-Chair elections
> 
> 
> I apologize for the mistake, although on further review it 
> may be a combination
> of the 75.5% and the 14.2% or 89.9%.  I wonder about this 
> though, as most 1-4
> employee businesses are sole proprietors, and the name would 
> be held by
> individuals anyhow. I speculate that only about 10% of the 
> names are actually
> in use. This is not for argument but just for clarity of 
> thought, and my
> thought is only rough.

Not true, in the US. Because of the 1986 Tax Reform Act (enacted in Jan87),
no computer professional can operate via a sole-proprietorship. It gets much
more complex than that, but that's the gist. When that code passed, 2.5M
sole-properietors were put out of business (me, being one of them, Computer
Linguistics, Huntington Beach, CA). The only way to do Hi-Tech
contracting/consulting, in the US, is under corporate umbrella, where one is
either a principle, or a W-2 employee.

Ergo, I'd bet that a relatively small number are sole-proprietorships and a
somewhat larger number are LLCs or sub-S corps.

You may find counter-examples of this, but I'll bet their clients don't know
what sort of IRS risks they're taking. All contracting agents (Hicks, XXCAL,
Rennesance, Spherion, etc) require incorporation, liability insurance, etc,
before letting out direct contracts. Otherwise, you become their W-2
employee. There is no option for sole-proprietorships.

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