Next Steps In Your Career
Next Steps in Your Career
Even the most accomplished and experienced IT professionals can sometimes feel unfulfilled or uncertain about what comes next in their careers. When that moment arrives, an important question often follows: Should I continue climbing the corporate ladder, or should I consider a different path—such as consulting?
Below is some perspective to help you evaluate your options.
The Corporate Climb: Stability With Limitations
Let’s start with corporate life. Working as a full-time employee offers many clear advantages. There is predictability—regular paychecks, benefits, and an established organizational structure. Performance reviews, defined job titles, and promotion paths
provide clarity and stability. For many professionals, this structure works well.
However, corporate life also comes with trade-offs that can limit long-term flexibility and earning potential.
Advantages of Corporate Employment
- Predictable Income
You know exactly how much compensation you will receive and when, which supports consistent financial planning. - Benefits Packages
Health insurance, retirement plans, paid time off, and sick leave provide a strong safety net. - Structured Career Growth
Many organizations offer clearly defined advancement paths, allowing you to measure progress through promotions, bonuses, and expanded responsibilities. - Team-Based Support
Employees benefit from shared resources, collaboration, and internal support when workloads increase.
Limitations of Corporate Employment
- Limited Flexibility
Most corporate roles require adherence to fixed schedules, attendance policies, and standardized procedures. - Organizational Politics
Advancement may sometimes depend on internal dynamics and visibility in addition to performance and expertise – sometimes it’s more about who you know than what you know. - Slower Innovation/ Red Tape
Implementing new tools or processes often requires multiple levels of approval, which can slow progress. - Earning Potential Constraints
Compensation growth may eventually plateau unless one moves into management or executive roles.
Now let’s compare this to consulting..
Consulting: Independence, Flexibility, and Opportunity
Now let’s look at consulting. For many IT professionals, consulting offers a more independent and entrepreneurial career path. While it requires greater personal responsibility, it also provides increased control, broader experience, and stronger income potential.
Advantages of Consulting
- Choice of Clients and Partnerships
Consultants may already have relationships with former managers or organizations that need specialized expertise. Others choose to partner with staffing or consulting firms that provide project opportunities while handling administrative tasks such as contracts, invoicing, and collections. These arrangements can reduce operational burden while still allowing consultants to focus on delivering value. - Variety and Professional Growth
Unlike traditional roles that may focus on the same internal systems year after year, consulting exposes professionals to multiple industries, technologies, and challenges. This variety supports continuous learning and helps consultants remain competitive in the market. - Higher Earning Potential
Consultants often command higher rates than salaried employees due to their specialized skills and project-based engagements. In many organizations, consulting costs are budgeted differently than full-time headcount, allowing compensation to align more closely with business initiatives and outcomes. - Greater Schedule Flexibility
While expectations and deliverables must be met, consultants are often evaluated based on results rather than strict schedules. Over time, this can lead to increased autonomy and work-life balance.
Considerations of Consulting
- Income Variability
Consulting work is typically project-based, and gaps between engagements can occur. With proper financial planning, many consultants successfully manage
these fluctuations. - Self-Managed Benefits
Consultants are responsible for securing their own health insurance, retirement savings, and paid time off. However, increased earnings often provide flexibility in how these benefits are structured. - Business Responsibilities
Depending on the engagement model, consultants may manage accounting, taxes, marketing, and compliance themselves or through professional service providers.
Forming an LLC or Corporation
Many consultants choose to formalize their work by forming a legal business entity such as a Limited Liability Company (LLC) or Corporation. Contrary to common perception, this process is typically straightforward and can often be completed quickly
with the help of online services or professional advisors. Operating through an LLC or corporation can enhance professional credibility, simplify client contracting, and provide a clear structure for managing income and expenses.
State resources, such as the Illinois Secretary of State Business Services Division, offer detailed guidance on forming and maintaining a business entity.
Guide to Organizing Domestic LLC
Guide for Organizing Domestic Corporation
Tax Advantages and Financial Benefits
Operating as an incorporated consultant may provide access to tax and financial planning opportunities not typically available to employees, subject to applicable laws and professional guidance. These may include:
- Home office expenses, when eligibility requirements are met
- Business equipment and software
- Travel and meals related to client work
- Self-employed retirement plans such as SEP IRAs or Solo 401(k)s
- Potential deductions for health insurance premiums
When managed appropriately, these benefits can help consultants retain more of their earnings and reinvest in their business and long-term financial goals.
Choosing Your Path
Consulting is not for everyone, just as corporate employment is not universally ideal. Some professionals value the structure, benefits, and predictability of traditional roles. Others prefer the independence, variety, and control that consulting and incorporation
can offer.
Those who are comfortable navigating corporate environments may advance quickly and enjoy long-term stability. Others may find that forming a business and consulting aligns more closely with their professional ambitions and financial objectives. Ultimately, only you can determine which path is right for you.
Disclaimer:
This document is provided for informational purposes only and does not constitute legal, tax, financial, or employment advice. Laws and regulations vary by jurisdiction and individual circumstances. Readers should consult qualified legal, tax, and financial professionals before making decisions related to business formation, consulting arrangements, employment classification, or tax planning.
