FAQs
Who is MBO Partners?
MBO Partners makes it easy for independent contractors and their clients to work together. We’ve been serving independent consultants for over 22 years with our two programs, MBO Corp and MBO Exec.
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What is MBO Corp?
MBO Corp is designed for qualified business entities, and amounts to outsourcing your back office administration to us. MBO Corp is for people who want to maintain their own corporation rather than joining our MBO Exec program. MBO Exec is a W-2 program which provides many of the same advantages as self-employment (e.g., reimbursed business expenses, independent work style, etc.), as well as access to the benefits and convenience associated with W-2 employment (health/dental insurance, retirement plans, automatic tax withholdings, etc.). If you would like more information about MBO Exec, talk with our experts or visit our pages for Individual Consultants.
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How do I know if I'm part of a qualified business and eligible for MBO Corp?
Visit our Compliance Center to learn about the requirements for working as a qualified, compliant, corporation, and then talk with our experts to find out if the program is a fit for you. For many independent contractors, even if you qualify to participate as an MBO Corp, you may learn that working as an MBO Exec will be even better for your bottom line.
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How much does it cost to be an MBO Corp?
For everything we do, we collect a Services Fee of only 4% of your gross billings. Better still, once we collect more than $125,000 of your billings 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 MBO Partners). And, there are no set-up fees or fixed ongoing charges. Even with the fee, joining MBO Partners can mean more net cash in your pocket. Factor in the money you'd make if you were billing clients instead of wrestling with your paperwork, and those hours each month you spend on administration could mean thousands in lost revenue. Talk with our experts for a net cash comparison between working as an MBO Corp versus MBO Exec to find out which program is most advantageous for your business.
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How do I submit invoices/vouchers for payment?
MBO Partners provides you with your own MyBizOffice, a secure online account. Here you (or someone on your staff) will be able to enter time and billable expense information to be included for payment on the next invoice. You may also be asked to provide supporting documents (signed timesheets and expense receipts) that may be required by your client. Once approved, MBO Partners provides an invoice to your client upon the next billing cycle.
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When and how will I be paid?
MBO Partners processes clients' payments on Tuesday each week for all funds we receive from your client through Monday of that week. We deposit funds into your designated banking account no later than Friday of that week.
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Does MBO Partners withhold any taxes from my check if I am an MBO Corp?
No. MBO Partners sends you the entirety of the funds it receives from your client (exclusive of our Services Fee) in accordance with your work order and supporting documents. Your business is responsible for making all statutory tax payments to appropriate taxing authorities. If you'd like to have MBO Partners handle your tax withholdings for you, check out our MBO Exec program.
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Am I eligible for benefits as an MBO Corp?
No; as a qualified independent service supplier, you operate as your own company and are not a W-2 employee of MBO Partners, so you are not eligible for benefits. To qualify for benefits you must become an MBO Exec by joining as a W-2 employee with MBO Partners. Talk with our experts about the advantages of this option.
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Can I become a W-2 employee at a later date with MBO Partners?
Absolutely. 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 become an MBO Exec. There's no better way to combine the satisfaction of independence with the convenience and benefits of W-2 employment. Many MBO Corps decide to move over to the MBO Exec program after learning more about it.
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Can I payroll my support staff through MBO, or bring on other consultants to work as MBO Execs?
Yes; talk with our experts about the many options we have for helping you engage the talented people you need, and read a little more about it here.
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