Freelance Work.

[wold1sim]

HI all,
I would like to do a freelance work in my spare time. However, I have no information about licensing, registering, tax information and so on. I was wondering if someone who knows about this information could give advice where start and how to structure it.

 

[fredericofonseca]

your country of work and/or residence/domicile, and state if applicable, will help others give you some pointers.

Regards

Frederico Fonseca
SysSoft Integrated Ltd

http://www.syssoft-int.com

 

[wold1sim]

I am a US citizen and currently live in Minnesota.

 

[LNBruno]

You'll most likely need to create an I-9 status as a start for tax purposes. I talked to an accountant in order to take a job where they didn't want to bring me on as a W-2. In my experience, it really was more of a pain than it was worth (having to pay quarterly estimated income tax? - EEE

http://WWW!!!).

< M!ke >
Your right to an opinion does not obligate me to take you seriously.
- Winston Churchill

 

[bdreed35]

If you can get clients to pay you as a 1099 indpendent contractor, then you can just file it with your tax return as income, and then pay taxes then. I don't think you even have set up a company and get a tax id, you can just use your SSN when you fill out the 1099 form for the client. I believe this works well for doing freelance work in your spare time, but I would definetly talk to an accountant so that you get the best deal for yourself.

~Brian

 

[mmorancbt]

Having gone the route of independent, corporation, etc. - if you are just doing some freelance work, you can start virtually immediately earning Schedule C 1099 income as an individual.

However, word of caution, get an accountant quickly, pay your estimated taxes monthly (not quarterly) - you can do it online at EFTPS.com - 1040ES form.

Then, you won't be "tempted" to spend the money you earn and owe a big tax bill. Depending on your regular income and what you earn freelance, plan on taking 25-30% out right away.

Also, setup a simple set of envelopes for receipts - even a single envelope, and use your checkbook software or quickbooks to categorize your financial transactions. It will save you time and money when your accountant prepares your taxes.

Finally, don't do your own taxes. Really. Focus on those things that maximize your income.

Matthew Moran (career blog and podcast below)
Career Advice with Attitude for the IT Pro

http://blogs.ittoolbox.com/pm/career