What If I Pass?
If an MBO Partners compliance assessment shows that you qualify as a compliant IC, you may work (or continue to work) with your client as an independent entity. You may operate your business the same way you always have and continue paying self-employment taxes as you do today.
Please note, however, that the results of an assessment are never permanent. As your situation changes, your compliance profile may change as well. In fact, MBO Partners re-assesses its clients' ICs with each new engagement to make sure they still comply with the IRS's guidelines.
Other Options
While you're qualified to work as an independent entity, that may not be the best option for you. MBO Partners offers two engagement alternatives for qualified ICs: MBO Corp and MBO Exec.
MBO Corp
MBO Corp makes working as a qualified business easier than ever. We bill your client and collect your funds, sending you the entirety of the funds we receive from your client (exclusive of our Services Fee). Your business is responsible for making all statutory tax payments to appropriate taxing authorities. As a qualified independent service supplier, you are not a W-2 employee of MBO Partners so you are not eligible for our group benefits program.
Please note that some clients require qualified ICs to engage through the MBO Corp service because they wish to consolidate the administration and payment of services suppliers through MBO Partners.
MBO Exec
Should you at any point decide that administering your own business is too time-consuming and inconvenient, or would like access to a rich and consultant-friendly benefits program, you are welcome to convert to our flagship MBO Exec service. There's no better way to combine the satisfaction of independence with the convenience and benefits of W-2 employment.
MBO Exec Associates get all the financial convenience of the MBO Corp service, plus access to medical, dental, life, and disability insurances; free General Liability insurance; a lucrative 401(k) program; pre-tax expense reimbursement; automatic tax withholding; and much more. Talk with our experts to learn more.