The Freelance business continues to grow rapidly
Freelance business, or freelance work is both popular and lucrative. Being an independent freelancer gives you the freedom to set your work schedule, prices, and workload. You also decide on the kind of work you’ll perform. So it’s a great way to earn extra income or build a business that aligns with your skills and interests. Being your own boss comes with some challenges that can make – or break your success. If you’re serious about starting a side gig or full-time business, this guide’s for you.
We’ll talk about what freelancing is exactly, potential to make money, and ideas to find work and grow your business. We’ll also cover the risks of working as a Sole Proprietor and how you can protect personal assets with a Limited Liability Company, or LLC. Find helpful resources to start and grow a successful business in this guide.
Freelancing is a type of work where the worker is self-employed, and typically carries out work in a variety of industries. A freelance worker is not as an employee and is responsible for reporting and paying taxes directly to the IRS. Freelancers – also known as Independent Contractors set their own hours, rates, and schedules, which can help you manage work/life balance while building a profitable business.
The freelance industry is one of the fastest growing industries in the world. Currently, there are around 70 million freelancers in America, and that number stands to grow to over 90 million by 2028. The global freelance market is worth an estimated $1.5 trillion. Whether you’re skilled in tech, customer service, marketing, or even teaching, you can make money doing contract work on the side, or building a full-time business.
Freelancing is not just a side hustle. For many people, it’s a full-time job, and there are almost endless ways to make money being your own boss. If you’ve got skills, creating your own work can help you build financial security and personal freedom.
Independent Contractors are in demand in a variety of industries, because they can do various tasks and projects quickly, without additional training. Freelancers can work on any type of project, from content writing to graphic design, from web development to video editing. The possibilities just depend on your skillset and motivation to earn income.
Web designers and developers can make money with skillsets at all levels. Both designers and developers create themes and content for websites, but not all designers are developers. Whether you have intermediate or advanced skills, website creators find success through platforms like Upwork, Fiverr, and other gig platforms.
Graphic designers focus on creating artwork including images, text, video, and other media. Think of creating logos, marketing brochures, company branding, etc. TopTal, Freelancer, and 99Designs are great sites to find work doing graphic design.
Accredited schools require a college degree, but even without one, you can teach courses online. If you do have a degree, speak English fluently, and have experience with kids, there’s plenty of work for online teachers in classroom settings. But you can also record your own online courses and host on a website, YouTube, and social media to reach new students.
Virtual assistants work either part-time or full-time and manage a broad variety of administrative tasks. A VA can do everything from manage calendars, to schedule travel, and handle administrative duties from anywhere with an Internet connection. FreeUp and Zirtual are just two platforms where you can find virtual assistant jobs fast.
Writers are paid to create content for everything you can imagine. Writing copy for journalism, books, seminars, websites, advertising, and other fields can be very lucrative. Since you set your working hours, you can write for anyone, anywhere in the world. Depending on your skillset and availability, you can make anywhere between $25k-$115k per year.
If you have expert proofreading skills, you can make money as an editor, either full-time, or on a project basis. Editors work on all kinds of content, from newsletters, to manuscripts, magazines, and more. In-demand editing jobs can be found in developmental and copy editing, and proofreading. You could also provide a combination of services to broaden your customer base.
Putting your accounting and finance skills to work can be a great way to start your own business. Freelancers with accounting and finance experience charge anywhere from $10-$200 per hour on Upwork. Other freelance platforms like Xero help you set up for success, before you start looking for work.
Social media is the best free and low-cost way to spread the word about a company’s products or services. And businesses are willing to pay top dollar to a specialist who can manage a large volume of posts, respond to comments, and publish original content for their brand. A social media specialist goes beyond sharing the last blog post online. The work may vary, but a social media pro may be involved in content creation, editing, publishing, and analyzing data to improve customer engagement and sales.
We have already mentioned content creation for editors, social media specialists, and web designers. A dedicated content creator does more than just write. Content ideas, project management, research and copywriting, visuals and video are all part of the content creator’s job. Since most content is publishined online, a content creator must also know how to work Search Engine Optimization (SEO) into his or her work.
Independent or freelance work has been around for a long time. Some pros offer the following tips to build a successful freelance gig and protect your investment.
Most freelance companies offer their own contract, so make sure you understand it. If you’re working directly for your own clients (not through a platform), a solid contract will ensure that you get paid. It will also define how customer satisfaction or potential legal matters are handled. You and your client should know and agree to the terms before any work is performed. There are free contract templates online, or you can hire an attorney to draft a contract for you. Contracts are legally binding documents. Working with an attorney can help you eliminate potential loopholes in the event of a dispute.
There may be times when a discount or a few freebies for a repeat client is in order. If you’re good at what you do, you may very well win return business. Sometimes it makes sense to reward loyal customers. But your time and experience are worth something, so don’t sell yourself short. Researching gig platforms like Fiverr and WeWork can help you set competitive pricing for your services. You can also join Reddit and Facebook groups for freelancers to find help and advice for pricing.
There are several ways to collect partial payment for a job. You may not be able to collect deposits if you’re working with a gig company. But if you’re on your own, experts advise taking a deposit up front to ensure that the client is serious and you’re not working for free. Again, doing some research can help you determine how and when to collect your deposit.
A Sole Proprietor is simply an individual who’s conducting business, according to the IRS. You don’t need an LLC to freelance (more on that below), but there’s no separation between your business and personal assets. This means that if you’re ever sued or have to consider bankruptcy, your personal savings, retirement, and other funds can be seized to satisfy a judgment. The only way to work as a freelancer and protect personal assets to is to form a company.
If you haven’t heard of an LLC, short for Limited Liability Company, it’s the most popular business entity for entrepreneurs and startups. An LLC offers all the benefits of running a Corporation, without the complexity and additional reporting requirements. The LLC structure is also easier to manage and change ownership, which is ideal for new companies. Even if you’re working alone, you can form a Single Member LLC to separate business and personal assets.
The main advantage of starting a freelance LLC is that it provides the business owner with tax benefits. A freelancer can lower self-employment tax and can also deduct business expenses with an official business. A freelance LLC has an easier time getting loans, finding work, and managing employees than an individual does.
Whether or not you have already started working as a freelancer, you can register an LLC to get paid and protect yourself as a business. The traditional Corporation setup is usually more than a small business needs, and they are more heavily regulated than an LLC. Most entrepreneurs choose the LLC structure because it’s easier to manage and costs less to maintain on a yearly basis.
Freelance platforms like Fiverr, Upwork, and Xero offer various ways to promote your freelance skills to potential clients. You can also expand your customer base by launching a website to promote your services. Whether you use a freelance platform or your site to market your skills, make sure to set up social media accounts to market freelance work and spread the word.
Order a custom domain, email, and web package for your freelance gig
We’ve covered the definition and stats of freelance business and potential for success. The industry is gaining in popularity, and there’s plenty of room to make money as a contract worker. If you have specialized skills and experience, you can turn a variety of freelance business ideas into a profitable side hustle or full-time business.
Freelance workers are in-demand for web design and development, graphic design, online teaching, virtual assistant, and a list of other niches. If you’re experience, motivated, and disciplined, you can build income while working around your personal life and goals. Professional freelancers have noted that a solid, signed contract, reasonable rates, and collecting a deposit ensure that clients are serious and you’ll get paid in full when the work’s done.
You can start working as a Sole Proprietor, but the only way to protect your personal assets from lawsuits and bankruptcy is to form a company. Most entrepreneurs prefer the Limited Liability Company (LLC) business structure, because it costs less and is easier to manage than a Corporation. Once you form your company, you can update existing profiles with freelance companies to get paid as a freelance LLC. If you haven’t signed up yet, simply use your business name, EIN, and bank account to get paid under your company name.
Signing up with freelance platforms like WeWork and Freelancer is the easiest way to find work fast. But you can also launch a website and social media accounts to promote your skills to a broader audience. MyCompanyWorks offers simple and affordable solutions for business formation and management. If freelance business suits you, you can order your LLC online today. You’ll get immediate access to your free account dashboard and be able to track your order’s progress in real-time. Most orders are processed in just one business day.
This entry was posted on Monday, January 9th, 2023 at 8:14 am and is filed under Starting A Business, New Business Ideas. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.