By definition – a “Freelancer” or “Contractor” is someone who is self-employed. Freelancers simply contract with others rather than choosing to work for an employer. Freelance work is most common in writing, blogging, photography, web design and programming. Freelancer work is economical for a business because the business does not have to provide benefits and can hire freelancers on an as-needed basis.
By 2020, freelancers in the US are expected to make up 40% of the workforce! The US is quickly becoming the land of the freelancer!
Advantages – Generally choose own work schedule, Income may be greater, May be able to work from home, Ability to move into new projects or areas of interest quickly
Disadvantages – Must do own accounting and taxes, No long term job security, Generally no benefits, May need to market services to find next job
Legal issues that Freelancers Face – (1) Contract agreements. Get a strong contract tailored to your trade to protect your work, your risk, and your reward! (2) Taxes – You got to pay Uncle Sam (Great Tips here) (3) Intellectual Property – Generally, if you create it, you own it unless you contract otherwise.
Just about anyone can do freelance work. Freelance work is a great gateway to a start-up business. Choose to live free and work freelancer! Here is a great resource to get started.
Contact Holt Law to draft a professional contract for your work or to help you launch a start-up. This is NOT legal advice.