Ready tojoin the ranks of the gig economyand start your own freelance business?
Being your own boss has a lot of advantages, but there are some pitfalls.
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What Is a Freelance Business?
Most start their freelance journey as independent contractors hired for a specific project or paid an hourly rate.
Some common freelance jobs include being a web designer orfreelance writerorillustrator.
What Are the Advantages of Starting a Freelance Business?
Before you run out to start a freelance business, its worth considering some of the pros and cons.
Step 1: Decide what services youll offer.
Step 2: Determine your rate.
What should you charge for freelancing?
For many freelance newbies, this is the hardest part.
And what youll charge depends on your industry, demand, skill level and experience.
Step 3: Build a website or portfolio.
As a freelancer, youre not usually selling a product.
And the first step to generating a customer base is to establish a virtual presence.
However, there are some advantages to taking the extra steps to make your freelance business an S corporation.
Step 5: File for an employer identification number.
And the short answer for most freelance businesses is yes.
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Step 6: Get your business licensed.
This often means paying a small annual fee for a state business license.
Many municipalities and counties also require businesses, even LLCs operating from home-based offices, to holdlicenses or permits.
Check with your city, county and state officials to determine what the rules are in your area.
Step 7: Consider opening a business bank account.
before you roll making bank as a freelancer, youll have to decide how to manage your finances.
Step 8: Figure out how to track income and expenses.
Step 9: Set up quarterly estimated tax payments.
One of the big adjustments to starting your freelance career is making quarterly estimated tax payments.
Calendar the following estimated tax payment deadlines to ensure you wont forget.
Is Your Paycheck Not Going As Far As It Used To?
We get it.Everythingis more expensive than it used to be, but your paycheck hasnt kept up.
When money is tight,these resourceswill help nearly everyone.
Kaz Weida is a senior writer with The Penny Hoarder and owns her own freelance business.
