Consulting - Might take the plunge (part time at least)

I know there are a bunch of threads on this and while I'm reading those just wanted a fresh perspective. I've recently changed industries, as a result I'm getting contacted by former clients that heard I made a change and they want me to consider consulting work for them. Nothing major, so it's really just extra money on the side (potentially).

But, if I'm just gonna break even on the various insurance I would need, separate business laptop and possible legal considerations (not sure that I would for an LLC right away, probably a sole proprietorship) not sure what the price point has to be for me to really consider it. I'd love to lay a foundation for consulting but I do have some health considerations to consider which makes full-time work for an employer easier to swallow but at the same time...I think I am capable of going on my own and don't want to 'settle'.

I'm sure others have been in a similar situation, did you consider it? Good/bad?

The only issue I have had with doing a bit of consulting work on the side is that those clients generally expect you to be able to respond promptly to emails and phone calls. Which can be problematic when working full time as an employee. You may find that it begins to encroach on your "day job", which is unfair to your current employer.

It does really depend on the work you're doing though and how time-critical it is.

I would also be cautious about launching into a solo operation unless you can support yourself with minimum income for at least 6 months while you get things established.

My only attempt at this so far was some fairly steady commissioning work while between jobs after a move. Where it became a problem was some additions to scope once I'd already finished and had started with a new company!

It is not mandatory to purchase all the insurance and BS the lawyers push us towards. You need to set up an LLC or Sub S corporation to separate personal from business assets. It entails some additional paperwork and unemployment comp payments, but there are no income tax consequences. Do NOT go into this as a sole proprietor - everything you own then becomes a business asset too and is exposed to the vultures.

Tell prospective clients that you do not carry professional liability or errors and omissions insurance. They can either waive the requirements they have in their boiler plate, pay the full premium for their required insurance, or put you on as a rider on their own insurance. Most of my clients choose that third option. If none of these are acceptable then I decline the project.

The above presumes you are not involved in high risk endeavors.

NOTE: I am not a lawyer, I do not play one on TV, and ultimately you have to decide.