The following tips are suggestions for the independent contractor.

Getting Started
You're on Your Way
Maintaining Your Business

Getting Started

• Consider contacting an accounting professional to determine whether sole proprietorship or incorporation is right for you.
• Research the cost of incorporation versus sole proprietorship with your town and state governments. Taxes and fees of incorporation can sometime outweigh the benefits.
• For your legal protection, contact an attorney to review all contracts prior to signing.
• Open a business checking account with your local bank in order to separate incoming funds from your personal finances.
• Consider installing an additional phone and fax line for your business. Using a personal phone line for business is not considered part of a "dedicated office", which some sponsors require. Along the same lines, a voicemail service through your local company is not only more user friendly when traveling, but is also considered more professional.
• Purchase a desktop or laptop computer as well as a printer/fax, which will be located in your "dedicated office". Sponsors require that you have a computer. Some sponsors might require for you to check email once per day (even during travel) and therefore a laptop computer would make a better choice.
• If you haven't already done so, become a member of the ACRP, DIA or SoCRA. Please see our Contractor Links page for more information.
• Consider purchasing professional liability (errors and omissions) insurance, which most sponsors require. See our Contractor Links page for information regarding professional liability insurance carriers.
• Please note, as a self-employed individual, you do not have disability insurance (long or short term). It is strongly recommended that you purchase a policy. Health setbacks can be costly to the contractor who relies on travel to maintain a business. See our Contractor Links page for information regarding disability insurance carriers.

• Sponsors require the contractor to pay for expenses up front prior to getting reimbursed, which can take up to 45 days for some companies. Therefore, be prepared to absorb multiple expenses for the first 1-2 months of contract work.
• Consider opening a corporate account with American Express, Diners Club or other frequent point earning credit card. Expenses accumulate quickly, so take advantage of the (frequent point) earning power.
• Find a good travel agent that specializes in business travel. Using the airline directly in addition to the internet is also beneficial and sometimes less expensive. However, when traveling it is often difficult to access the internet to make changes if required. Despite the ticketing fee (which most sponsors will reimburse you for), a travel agent provides a knowledgeable resource when you need it most (i.e. unforeseen weather, schedule and travel changes). Contract Monitors highly recommends Business Travel International, which can be found on our Contractor Links page or by clicking here.
• Open frequent flyer accounts with all airlines you anticipate doing business with. Please note that the ideal benefits of frequently using only 1 or 2 airlines are the following: 1) reach mileage thresholds faster; 2) earn first class upgrades; 3) earn elite status faster; 4) earn valuable bonus mileage.
• Open frequent stay accounts with the hotels you plan to use. The same philosophy behind using 1 or 2 airlines applies to hotel chains. Always opt for earning points rather than airline mileage for your paid hotel stays. Loyalty to 1 or 2 hotel chains allows you to earn elite status faster (room upgrades and point earning bonuses). Staying with relatively few hotel chains also allows you to use your earned points toward free stays. Marriott, Hilton and Sheraton have excellent programs due to the large number of hotels owned nationally and internationally.
• Open frequent user accounts with the car rental companies you plan to use. Opt to earn reward points rather than airline mileage when renting. Hertz offers small businesses the option of opening a Business Account (in addition to Hertz #1 Club Gold and Awards programs). A Business Account provides a discount for your company when renting in addition to free upgrades and one free rental day coupon for every 15 paid rental days (company wide).

• It is recommended that you try to obtain more than one contract for job security. Contractors are typically not paid for time not worked. Therefore, at times when projects are slow and sometimes canceled, it is beneficial to have another contract available.
• Be aware of when your current contract is ending. Market yourself early and often in order to maintain a smooth transition from project to project to avoid large gaps in work.
• Educate yourself! Plan to attend at least one educational session each year in order to maintain your knowledge of the clinical research industry.
• Consider using QuickBooks type software to maintain your accounting, which may be compatible with sponsor accounting programs (for ease of invoicing).
• Based on your contract, determine how long it would be necessary to archive study documents in your office. Also, determine whether a shredder makes sense when destroying proprietary information.
• Check out our Contractor Links page for beneficial services for your small business!

Please note: Contract Monitors does not assume liability for the misinterpretation of the information provided on this page. The Contractor Tips as noted above are from experienced individuals and should not be interpreted as fact, but rather the suggestion and opinion of contributing editors of Contract Monitors.