Service Provider vs Contractor

Question

If I have set up a business as a sole proprietorship, registered as doing software development, can I "sell" my services(much like a mechanic) where I bill the client a total plus tax, as opposed to being a contractor/consultant and them paying me an hourly wage?

I do all work at my own office, but sometimes that requires remotely maintaining/fixing a client's pre-existing code as opposed to building something from scratch every time.

I know I should talk to a lawyer, and I probably will, but just looking for some shared experience from the community.

Thanks!

Answer 1

Definitely talk to a GOOD lawyer and accountant who know the programming and consulting business. In some states, computer software is regarded as "tangible personal property", and you are required to pay taxes based on transactions that include the delivery of software (even if you "deliver" it by sitting down at the client's system and typing it in).