Starting my IT Consulting Business

**stlsmoore** · 11-21-2009 11:12 AM

Hello all I believe I'm finally ready to put my plans into motion and get my consulting business off the ground. MY IT services will focus on providing IP networking solutions for small/medium business owners. Basically setting up routers, switches, firewalls, and VoIP for customers along with providing support for these services. I'm currently working as an network analyst and I'm still moving up the networking telecommunication ladder but but I only work 15 days a month which gives me more time than what I know what to do with.

I'm going to focus on partnering with other IT businesses that are unable to provide sufficent network support for businesses. The market research I did so far shows that many IT support companies a lot of times aren't able to provide a lot of networking support due to the steep learning curve when it comes to network engineering compared to say PC support. I registered my ficticus name with my state a few months back but I haven't accomplished much else besides a small business plan and my own market research. I want to get the LLC and all the legal things taken care of next to protect my self. Who should I talk to about this, should I find a business attorny, account, or both? Also while I'm going to market my services as much as possible are there companies out there that provides marketing and even sale services? I want to delegate as much as possible so I can focus on building the business it self, I know I'll have to wear multiple hats for while though until then though. I appreciate any advice in advance!

**cg410** · 11-21-2009 05:31 PM

As an IT company owner, I can tell you that clients that want IP networking are few and far between. The main reason is that for small businesses (say, less than 50 employees), networking gear is pretty simple. A single switch, a router, a firewall, and a couple of wireless access points is pretty much it, and once they're set up, there's no maintenance.

There's much more money to be made if you can do systems as well. Beyond the above, there are other companies that do both networking and systems, so why would I pick a separate company for each? Grab your MCSE (and CCNP -- don't want to look entry level, right?) as soon as you can, and expand into being a one-stop IT shop.

As far as your business structure, I never understand why people go for LLCs over S-Corps, but I guess that depends on state law. The only LLC I ever started was in NY, and it was *way* more complex and expensive than getting an S-Corp, and offered no benefits. The easiest way to start a corporation is to type "start a corporation [YOURSTATEHERE]" into Google. For as low as $30 + state fees, there are companies that will incorporate you and give you all your starting documents. Note that in some states it is so easy to incorporate yourself that you don't need anyone's help. For example, in FL, you go to www.sunbiz.org - Home with $70 and you can come out with a real live corporation in about 5 minutes.

As far as liability, in IT your biggest liability is getting sued because you fucked up someone's network and they lost money and/or data. Require all clients to sign a retainer agreement and make sure that one of those clauses is a disclaimer of liability. Something to the effect of:

IT systems are subject to failure even when precautions are taken to prevent against them. Joe's IT Shack will not be held liable for any damages resulting from the use of our services, including but not limited to damages caused by lost data, lost business opportunities, lost employee time, or any other type of damages, actual, consequential, punitive, or otherwise, even if the damages are caused by the negligence of Joe's IT shack.

Hope this helps.

--J