FAQ's
General Questions
Who is MBO Partners?
Our firm makes it easy for independent consultants and their clients to work together. We’ve been in business for over 22 years, and formerly operated under the name MyBizOffice. MyBizOffice is the name of our proprietary online system, and as the core of our company, MyBizOffice is the “MBO” in MBO Partners. To learn more about MBO Partners and meet the leadership team, explore the About MBO section of this website.
Why did you change the name from MyBizOffice to MBO Partners?
We’ve been in business since 1986, and over the years the company has grown and evolved significantly. What started as a revolutionary back-office management solution for independent consultants has become a full-fledged corporate platform for people doing business. For years, Associates and clients have been calling us MBO, and we got the message. We updated the company brand to make it work for all the communities we serve, from independent consultants to large companies and government agencies. While MyBizOffice is a great name for the system that consultants use to manage their independent practices, it didn’t make as much sense when those same individuals were pursuing new contract opportunities, or telling people where they work. So we updated the name of the company to MBO Partners, and the online system is still MyBizOffice.
Who is it designed for?
MBO Partners is designed for professionals who work independently: consultants, independent contractors, freelancers, and independent agents. Our services are perfect for independent IT experts, management consultants, engineers, writers, investigators, trainers, project managers, designers, real estate agents, recruiters, event planners, architects, attorneys, financial advisors, and many others. Whether you are already self-employed, or just thinking about going out on your own, you’ll want to find out about us. We also help small businesses like niche consulting firms and small staffing firms, so if your business has its own corporation already, you still may want to learn how you can outsource your back-office administration to us and save time and money.
MBO Partners is also the ideal solution for businesses and government agencies in need of better ways to engage, pay, and administer their independent contractors. We can consolidate the administration of independent contractors, and also reduce or eliminate 1099 risks. We also partner with other experts in the contingent workforce management space, collaborating with Managed Service Providers (MSP’s) and Vendor Management Software (VMS) companies. We work with these firms as a seamlessly integrated independent contractor engagement solution.
Are there occupations or industries you do not serve?
Our company does not generally serve self-employed individuals who do product sales. We are oriented for services providers and “knowledge workers.” Doctors, nurses, and other healthcare providers are usually not a fit for our model because those occupations have a different set of liabilities and business needs. The business model is tailored for individuals who typically earn over $75,000 per year; people earning at a lower level may find that a different solution would better suit their needs. The quickest way to find out if we can help is to contact us.
How does it work?
When you join as an MBO Exec, you become a W-2 employee of MBO Partners and receive the benefits and privileges normally associated with a full-time job. But it's better: you'll get to pursue contracts whenever and wherever you want—and you even set your own billing rates. We then collect your time and expenses, bill your client, collect your money, deduct appropriate taxes and insurance costs, and direct deposit your proceeds. It's your talent, and you own it.
How can I be both independent and a W-2?
MBO Partners offers an innovative business model that we originated in 1986 called a Portable Employer of RecordTM (PER). As an employee, you enjoy all the perks of full-time employment. But we don't get in the way of your independence. You simply focus on building an independent career while we take care of the administrative details.
Are there any start-up or monthly fees? Would I be charged a fee if I decide to do something else?
There are no hidden fees, account set up fees, or monthly service fees – the cost of the program is assessed as a percentage of your billings or receipts. We’ll even reimburse you for the American Express card fee, because we think it’s a great program and we want Associates to take advantage of the convenience and automation. If you elect to enroll in benefits, those programs may require deposits to ensure your benefits are not interrupted. If you ever decide to depart MBO Partners, there are no obligations or fees. We pride ourselves on full transparency – the business is yours, and you have the control. Talk with our experts for a detailed preview of how the program will work for you.
For some Associates who work on a commission basis, we have a special bank deposit program to accommodate your needs, and a nominal bank fee may apply for this extra transaction service. Your Enrollment Manager will explain how that program works.
How much does it cost?
For everything we do, we assess a Services Fee of only 5% of your gross billings. Better still, once you bill more than $125,000 in any year, your Services Fee goes down even further—to only 1.5%—for the remainder of that year (based on your anniversary date with us). We deduct these funds from your online MyBizOffice account before calculating your taxes—so even our Services Fee is a tax deduction. For a detailed break-down of how this will work for you, contact us.
How is being an Associate with MBO Partners better than "going it alone"?
There are several reasons. First we save you money—by giving you the ability to reduce your taxes while minimizing your need for accountants, tax preparers, and benefits brokers. MBO Partners also saves you time by handling billing, collecting, and other administrative hassles.
As an MBO Associate, you’re covered under our group umbrella for General Liability and E&O insurance, and the savings from this alone can often offset the MBO fee for most consultants. We also help in ways you may not have thought of. We greatly improve your ability to get loans and mortgages because you'll have a single "portable" employer-of-record (PER) throughout all your contracts. And being an MBO Associate also lets you alleviate the perils associated with being a 1099 or self-incorporated at tax time—not to mention reducing your likelihood for being audited.
Finally, we help you save on legal fees by reviewing and executing your contracts.
How is MBO Partners better than using an intermediary (such as a staffing company, broker, or professional consulting firm) for true independent consultants?
Many staffing companies and end-clients probably want you to become their employee—but they may not offer the robust benefits, expense reimbursement, retirement plans, and flexible payroll options that come standard with MBO Partners. You may not be able to work for multiple clients, on multiple projects at the same time. And they generally take a much larger cut of your billings, because their business model is focused on finding assignments for you. For true independent consultants who find their own work, MBO Partners may be the better option.
Can I leave at any time?
Certainly, you can leave MBO Partners at any time. But don't be surprised if, like many of our Associates, you establish a long-running independent career through us.
Can H-1b applicants become MBO Associates?
Yes. Because our Associates are W-2 employees, we conduct H-1b Visa transfers under the same restrictions and guidelines as other firms. If you are a foreign national and have an assignment lined up, please contact us to find out more about the process.
Project Questions
Do you have any open positions for me?
Our service was designed for independent consultants and freelancers who find their own work. If you are looking for your next project or client, talk with our experts to find out how you can leverage our resources and contract relationships to market your services, or explore collaboration with our community of Associates and project teams.
If you are interesting in joining our internal, corporate team, please visit our Careers page to learn more about the opportunities available.
Is MBO Partners a staffing or project placement company?
No. We don't perform project matching services—which is one of the ways we keep our service fee so low. We believe that finding great projects can be easy, even without an intermediary, and we'll even show you the best ways to get started. Our model is designed for consultants that can line up their own work, either solo or in teams with other Associates.
Also, unlike most staffing companies, MBO Partners never includes non-compete or non-solicitation clauses in its contracts with employee-Associates. You can work for multiple clients, on multiple projects.
Can I still use a staffing company or contracting firm to find projects?
Yes. Many of our Associates obtain projects through various project matching organizations. As long as you are happy with the rates and the work, we can engage you through intermediaries with no additional effort. Indeed, we partner with hundreds of staffing firms and consulting firms and have a great working relationship with them.
How does MBO Partners enable me to get into other clients?
Many organizations won't do business directly with independent (1099) individuals for two primary reasons: using them may violate tax codes and lead to severe penalties, and clients generally want to limit the number of different vendor companies they use. (As an independent individual working on a project for a client, you would be considered a vendor just like any other company.)
But when you use MBO Partners, you're not considered an independent individual in the eyes of the organizations for which you would like to work. Instead, they'll see you as part of a company, one with which they may already have a vendor agreement. So getting started on a project within these clients would be a snap! Ask our representatives if the clients you want to do business with already have a contract in place with us. Our contracts team is always ready to execute new master agreements with your existing or prospective clients, as well.
Do I need to have a contract ready to join MBO Partners?
No. You can get started without having a contract in place. However, you won't become an official MBO Associate (and begin receiving all the great benefits) until you start billing to a contract. Your actual employment start date would be the day you begin billing. Contact us to learn more about how our program works today, so that when you are ready to start a project we can help get you up and running immediately.
I am still a W-2 employee – do I have to wait until I am no longer with my firm to get started?
Our representatives would love to hear from you today and find out how we can help. Some Associates may elect to start project work through MBO while still being a W-2 employee with another company, and this is simply considered a second job. Or, you may be making the transition from employment to freelance or contract-based work, in which case it’s better to get started with enrollment now. When your project actually begins, all the pieces will be in place to get you working rapidly. Your situation is unique, so the best way to find out what to do is just contact us, and we’ll let you know the best route to get where you’d like to be.
Will my clients be OK with this arrangement?
Absolutely. We find that most clients are more willing to work with individuals who are part of a larger organization. Many clients even refer their contract workers to us so that we can provide an administrative umbrella for them. For the clients, we make working with talented independent consultants like yourself easier, safer, and more cost effective.
My client says I need to work through you. Why? What should I do next?
Many clients will send us their high value independent consultants. If your client referred you to us, or said you need to find an "employer of record," contact us today so that we can help get you set up. Many clients have special programs with us for their contractors, so contacting us now is the best way to make sure you have the right information.
There are many reasons clients refer their contractors and consultants to MBO Partners. They know that by going through us, the process to get you paid will be fast and efficient for everyone involved. Their risks for working with an independent contractor will be greatly reduced, as we make sure all contractors are either a compliant corporation, or become our W-2 employee. And finally, they know that you’ll be taken good care of, with our suite of executive group benefits and high touch support.If your client told you to find an employer of record service, we can help. Our unique "portable employment" model means you aren't limited to just one client or project at time. Contact us to learn more: as your Portable Employer of Record, we can help both you, and your client, be more successful.
Financial Questions
How can being an MBO Associate help me make more money?
One way is that we minimize the administrative burdens of independence... so you can dedicate more time to working on projects, improving skills, and marketing your talent. All of these lead directly to greater income. Also, MBO Partners charges low group rates for health insurance and provides free general liability and errors and omissions insurance coverage. (For many newcomers to independence, the need for liability insurance is an unwelcome surprise.) MBO Partners also lets you deduct all of your out-of-pocket medical and dependent care expenses (up to $10,000 and $5,000 a year, respectively) in addition to all the "traditional" business expenses you may be accustomed to claiming. We can even bill your clients for you if you have expenses that go back to the client.
And don't forget: our retirement plans allow you to shelter up to the legal maximum from your taxable income (the 2008 maximum you can contribute to your MBO 401(k) plan is $46,000, or $51,000 for individuals over 50).
What is MyBizOffice?
When you enroll with MBO Partners, we create your own one-person division within our company. And you're completely in control. Through the MBO Partners secure online system, called MyBizOffice, you can keep tabs on everything that's happening in your business: monitor your accounts, review your payment status, see your billing history, change your benefits, enter your time and expenses, and much more. It’s accessible any time, any place, through the secure online interface.
What is the role of my Business Manager?
Your Business Manager is your primary point of contact with MBO Partners and supports your day-to-day needs. MBO Partners's friendly and experienced Business Managers are trained to handle even the most complex questions and problems about our services. Your Business Manager is there to answer your questions regarding payroll, benefits, contracting, investing, and more . .. even learning about how to build your business into a team, or even into a small consulting firm.
What happens to my money after I perform my project work?
As soon as your time is entered into the system and approved, we go to work collecting your money from your client. When we receive the payment, we post your funds to your account within the MyBizOffice system, and deduct our fee (pre-tax). We reimburse your expenses, invest funds into your 401(k) at your direction, pay your elected benefits premiums, and then depending upon the payroll schedule and amount you select, we allocate funds for payroll and extract appropriate state and federal taxes. Finally, we direct-deposit your funds into your bank account.
What taxes are withheld from my Business Center?
At payroll time, we are responsible for collection of corporate payroll taxes from your account. Because you are an MBO Partners employee, we are required to pay various employer-side payroll taxes which are paid on your behalf to various state and federal agencies. We pay these taxes out of your account as an expense for using our service. These are over and above the employee payroll taxes typically taken out of every employee's paycheck. Your Business Manager can show you how this transparent process works and is detailed in your account information.
Is the MBO Partners service fee tax deductible?
Yes. We deduct our fee pre-tax, so our fee never appears as income and is not taxed.
Will I get a regular paycheck?
As long as you're billing clients and have money coming into your Business Center, yes you can. Through your online MyBizOffice account, you tell us how much you want to be paid and when you want your money. We can certainly send your money from the next payroll cycle after we receive your funds, but many of our Associates choose to spread payments over a period of time (getting "regular" paychecks) to aid in monthly budgeting.
When will I get paid?
We begin processing your money as soon as we receive it from your client. Client payments received by the end of the week will appear in the following week's payroll cycle. Again, you may spread payments over a longer period of time if you wish.
For an additional fee, you may choose to have your payments advanced. MBO Partners pays advanced Associates in the pay period immediately following the approval of their time worked. (Credit-approved clients only.)
How do I account for expenses?
Through MBO Partners' unique pre-tax expense reimbursement program, Associates are eligible to take legitimate business, medical, and dependent care expenses out of their operating funds on a tax-exempt basis. Because MBO Partners reimburses your legitimate expenses pre-tax, you can reduce your taxable gross wages and therefore dramatically reduce your income tax payments. Further, MBO Associates realize the tax benefits of their expenses immediately, rather than waiting until tax time. Using your corporate MBO American Express card makes expense management even easier, as the expense data is automatically uploaded into MyBizOffice for you to approve.
How can using MBO Partners help me secure a mortgage?
Mortgage brokers and other lenders are much less likely to approve loans to people who don't show solid job continuity. But this is not a concern for Associates working through MBO Partners, because we represent a single employer of record—no matter how many different clients you work for!
How does using MBO Partners make filing taxes easier?
Tax time for independents used to be a harrowing and expensive challenge. But instead of wrestling with scattered 1099 forms and stacks of expense receipts, our Associates simply file taxes using the year-end W-2 we send them. Business and medical expenses have already been processed.
And quarterly tax estimates? As W-2 employees, consultants working through MBO Partners don't even have to do these either!
Associate Support Questions
What Associate support does MBO Partners offer?
When you join MBO Partners, we assign you a dedicated Business Manager. You can reach your Business Manager during normal business hours (Eastern Time) and he or she will answer your questions or resolve any problems that arise. It's like having your own personal HR, Accounting, and Administrative departments! In addition, you can access every detail of your business operations through MyBizOffice, your secure online account with MBO Partners.
What can I access through MyBizOffice?
You can use your online account, MyBizOffice, to enter your time and expenses and access all payroll and account transactions. In addition, you can update your profile including payroll and benefits options. You can also take advantage of the resources in our Connection Center, where you can connect with other independent consultants, view our list of clients, and build your own google-searchable MBO Partners website.
Is my information secure?
At MBO Partners, there is no greater priority than the security of our Associates' financial information. Our financial systems were designed and implemented by experts in the development of secure e-commerce applications. For more information about the security of our system, talk with our experts and ask for more information.
Benefits Questions
What benefits does MBO Partners offer?
MBO Partners offers comprehensive group health and dental insurance, free professional and general liability insurance, and long-term disability insurance. In addition, you can take advantage of a 401(k) program and set aside even more through our profit sharing program. Between the 401(k) and the profit sharing, you can contribute up to the legal limit from your taxable income: for 2008, that's $46,000 ($51,000 over 50) per year.
Do you mark up your benefits?
We do not mark up the cost of benefits; all benefits costs are passed through to our Associates, with the advantage of our true group rates.
Are you self-insured?
MBO Partners is not self-insured, and we make no profit on benefits we offer. We partner with well-known benefits companies to offer our Fortune-500 style programs. When researching umbrella companies with services similar to ours, find out if the firm you are thinking about is self-insured. This is a risky practice, but often enables the firm to profit from the plans they offer.
Can I use my own health benefits?
Yes you may; the medical and dental plans are fully optional.
How does the 401(k) matching work?
Because you run your own business within the MBO Partners infrastructure, you can decide the level of contribution you make to your 401(k) (up to the legal limit, of course). The contribution you make is also matched from your business funds, which enables you to contribute the maximum allowed to your retirement. It is possible to max out your MBO 401(k) twice as fast as you could a SEP IRA, while realizing significant savings by not having to contribute self-employment taxes on your retirement contributions. Please contact us for the details about our tax-advantaged retirement program – it’s a unique, executive plan designed for high-level consultants, and our experts would be happy to go over it with you.
When can I begin participating in the 401(k)?
You may participate as soon as your MBO Partners employment begins (i.e., when you begin billing your first client).
How does MBO Partners' profit sharing work?
Through the MBO Partners profit sharing program, Associates set aside 3% of their compensation per year (up to the legal maximum when combined with the MBO Partners 401(k)).