Legal advice for newbie

[ContrataxLtd]

There are quite a few consultancies which work on the associate model - IIRC, Claremont and InnoApps within the Oracle space work on this model although Claremont are expanding more with permies. I think Mokum probably did the same thing before they were taken over by PWC last year.

I know people who have worked through consultancies on this model and had no problem with it (it makes the consultancy look bigger and better than they are, so they can bid for more lucrative work) - but they were "normal" contractors rather than having a convoluted ownership structure.

I have a few clients who work with others on an associate type basis similar to those mentioned above (but on a smaller scale). As you say, it enables them to look bigger than they actually are and thus bid for bigger contracts . All the ones I've dealt with have had the associates contract to them and invoice accordingly rather than setup with share ownership but it an be done (consortium springs to mind).

Done well this type of thing can be quite lucrative for all involved.

Martin
Contratax Ltd