After events described in this question, my team and I decided to start our own company (limited liability). So far we are still going through setup procedures, and we are currently working with clients who are fine with us being legally freelancers.
One of our prospective clients is happy with the team skills, and wants to open a representative office in my country and hire all of us as employees.
We are not very happy with being employees, as limited company setup has these advantages to us as a team:
- Legal. We are better protected from possible layoff, and are free to find other clients/projects in case of any issues.
- Portfolio/brand. Working together as a company helps us developer our portfolio and brand name.
His main concerns with our proposed limited company setup are:
- Controllability/reliability. He says that working directly with employees streamlines communication, and is easier. I also implicitly understand that he is concerned about degree of control he might lack otherwise. Our insistence on a an independent entity might also be a signal of wavering commitment and long-term cooperation viability issues.
- Security. Our client is working in the finance sector, and says that is critical that all work is performed from authorised premises and on secure equipment (laptops with security constraints and VPN).
I've been thinking about the following counter-arguments to the points above:
- Our limited company basically can out-staff ourselves as his employees, therefore it will be completely transparent to him. The only difference will be the contract, that will be signed between his company and ours, and not between his company and all of us separately. The contract can explicitly mention exactly who will be working on the project. And moreover, there are no long-term guarantees with employees as well.
- As to the security, we can through secure VPN and access their remote machines through ssh or remote desktop, thus still staying within security boundaries.
My question is: are my proposed arguments valid, and what else can I do in order to address client's concerns #1 and #2?
P.S. If this question does not fit well within this site, please let me know whether there is a better place for it to be posted on.