If you enjoy writing and desire more freedom in hours and pay, consider becoming a freelance writer.
Freelance writers choose the jobs they want and have more control over what they are willing to accept as payment. Freelancers don’t work in a traditional office setting and are their own bosses. To be successful as a freelancer, you’ll need to be self-motivated and find your own clients.
While this freedom and autonomy may sound promising, there are a few things that you should know before pursuing this career. Continue reading below to learn more.
1. Contracts
As a freelance worker, you need to think about the legal side of the business. When you take on new clients, it’s vital to have a contract with terms you both agree on because it will protect you and the other party from legal issues. If the client doesn’t already have a contract, you may want to create one together. Either way, make sure the contract has terms that protect you and your intellectual property.
A contract will also help establish your time and pay, ensuring that there will be no wage and hour disputes later. You need to be proactive in determining fair wages beforehand, so consider all your expenses, time, and effort for the work the client wants you to produce. If you’re not sure of a fair price, go online and research what other established writers are charging for similar work.
2. Business Licensure
It would be wise to invest in securing a business license as a freelance writer because it’ll protect your personal finances and assets. Having a business license will also help you with your taxes and following the state and federal laws.
The type of license you need depends upon different factors, so you need to do your research. Every state has laws concerning small businesses and even freelance work, so look into your local laws and abide by them to avoid fines and other penalties.
A popular choice for many small business owners and freelancers is securing an LLC. LLC stands for limited liability company and can have one or many owners. In some states, owners may include individuals, corporations, other LLCs, and foreign entities. LLC licensure is reasonably inexpensive and can help establish more credibility.
3. Finances and Taxes
Freelance writers are responsible for their finances and taxes. All the money you make from freelance work needs to be reported annually to the local, state, and federal governments. Withholding or failing to report finances could get you into serious legal trouble. Therefore, being organized and on top of your money is crucial.
It would be best to have a separate bank account for all your business-related income and expenses. This way, none of your personal credits and debits will be mixed with that of your business. A separate bank account will also help keep you organized.
Another way you can make sure you have enough funds is to set aside a portion of all of your money earned from your business specifically for taxes. You’ll be required to pay taxes quarterly and during tax season.
Check your local and state laws about taxes to ensure you’re following their requirements. Once again, all states have specific regulations. You could also find a certified public accountant to help you with your money and taxes. They will give you expert advice about handling your finances and keeping you out of legal trouble.
Conclusion
While being a fantastic writer is essential to freelance writing, don’t forget that there is a business factor to consider before jumping into this venture. However, if you have the skills and dedication to succeed, you may just find your dream career.