[Hugh R]

Used to be an Environmental, Health and Safety consultant working out of my house. General Liability and E&O insurance $10,000/year, medical insurance for family/employees of the corporation $10,000/year, employer side of social security $6,400/year, Celll phone $1,000/year (which was essentially my office), email $300/year, computer, printer, office supplies figure another $1,500-$2,000/year which put something aside each year for upgrades every few years. Mileage that wasn't billable $0.50/mile @10,000 miles/year=$5,000. That's just getting started. You could include other things like 401k matchng for the one and only employee (me) of another $4,000.

Your up to about $30K per year. Add in each year another piece of sampling or testing equipment which I decide to buy versus rent for the ability to have it when I need it and your moving up on overhead nicely. Add in home office expenses, which you don't want to write off because its an IRS red flag, but rather a percentage of the utilities and mortgage and kick in another $5K. My last year of consulting I figure about $45-50 for "overhead" and thats just me working out of my house. That equates to about 20-25% overhead, which is pretty standard. I'm figuring these expenses like medical because many companies in my field over some form of medical. Didn't include sick time or vacation, because as a sole practicioner, if I don't work, I don't get paid for sick or vacation.

Oh, I left out professional licenses, and fees, publications and required continuing education requirements to maintain those certifications, toss in another 5k.

I make less working for my current employer than I made (Gross or Net) as an independent consultant, but all those avoided costs like insurance and the education costs and employers side of social security add up pretty quick.