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Establishing a statistical consulting business

Welcome to the website for Sound Statistics, LLC, a statistical consultancy based in the Puget Sound region of Washington state. In addition to hosting information about my service offerings and links to resources, I plan to post insights related to practice of statistics, biostatistics, and related disciplines.

Like many biostatisticians, my non-profit research position was eliminated May of 2025 due to funding shortages, and I found myself considering employment options. While interviewing for jobs, I connected with scientific investigators and other statisticians about the prospect of independent consulting. Given a sufficient level of interest, I decided to invest time, money, and energy into this venture.

For others considering starting a consulting practice, below are key steps that I have taken to date to establish Sound Statistics:

  1. Filed the business with federal and local agencies
  2. Opened a business bank account (with initial investment or loan)
  3. Purchased professional liability and cyber security insurance
  4. Drafted a website (using GITHub Pages)
  5. Purchased software (Microsoft 365 and Intuit Quickbooks)
  6. Purchased a domain name to be used for the business website and email address
  7. Investigated market rates and calculated what hourly rate would align with full-time salary plus benefits
  8. Drafted/executed contracts with clients
  9. Drafted/executed contracts with referring agents (agreeing on “finders fees” terms for “qualified leads”)
  10. Filed taxes (monthly, quarterly, or annually depending on expected income and other factors)

Next steps involve marketing, certifications, paying myself a salary, establishing long term insurance coverage (alternatives to Cobra), and setting up a retirement savings account.

Given my experience in academia, I have received requests to support federally funded research. Though it is possible to serve as a vendor or consultant without certification; the level of collaboration likely to be required, including substantial contributions to grant proposals, protocols, and peer reviewed manuscripts, would involve a subaward designation.

At the University of Washington, the first step is for a faculty member to request my business as a Supplier. Then, through the university system, I may submit a form for subrecipient entity certification with details about my business, salary, and indirect cost rates.

My salary will be based on the market estimates in my area. I plan to base fringe benefits on “actual” rates and to apply the default rate for facilities and admistrative costs, which is 10%. The other option is to negotiate rates with a federal agency, which doesn’t seem worthwhile at this time but could lead to an interesting post later!

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