Freelancing?
December 14, 2005 5:16 PM Subscribe
Freelancing: I recently left a web/graphic design position on good terms. I have verbally offered my services on a freelance basis, and they are interested...
This would be a helpful second source of income, and I am able to sacrifice the spare time. I would like to send some info (a rate card of some type) to my ex-supervisor in order to seal the deal.
She mentioned to me that she thought that I might need to work out some legal issues in order for them to hire me as a contractor. Does anyone have experience with this? Do I need to name my business and aquire a tax ID number? Is this worth doing if I am not completely sure they will do business with me?
Also, does anyone know any good sites with info on setting rates for various projects, i.e. photo retouching?
This would be a helpful second source of income, and I am able to sacrifice the spare time. I would like to send some info (a rate card of some type) to my ex-supervisor in order to seal the deal.
She mentioned to me that she thought that I might need to work out some legal issues in order for them to hire me as a contractor. Does anyone have experience with this? Do I need to name my business and aquire a tax ID number? Is this worth doing if I am not completely sure they will do business with me?
Also, does anyone know any good sites with info on setting rates for various projects, i.e. photo retouching?
An SSN is fine for the tax reporting. But the legal issues she's referring to may be unrelated to that---perhaps something contractual? For instance, the company might require their contractors to show proof of liability insurance or somesuch. Whatever the issue is, she hasn't given you enough info to act on. Call her back, reiterate your interest, and ask her to refer you to the internal person who can give you the company's contracting requirements, negotiate terms, and work out "those legal issues you mentioned". Being sent with a manager's endorsement ("we'll be doing sending some freelancer work to this person, get him set up for that would you?") should also help grease the skids.
posted by nakedcodemonkey at 6:01 PM on December 14, 2005
posted by nakedcodemonkey at 6:01 PM on December 14, 2005
definitely write up a contract from your end - this is what protects you and your client.
mine's pretty basic though. it outlines:
1. pay rate (or sum if project size has been outlined already)
2. relating to above, estimated project completion time.
3. minor modification in what happens if project time exceeds (ie. if this is your fault for not being able to meet project time in such and such, no extra charge, if it exceeds a lot, then client can get discount, if this is due to client bringing in extra work in the middle of the project, then how much extra you'll charge, etc.)
4. copyright and ownership (you'll probably need to work with your client)
5. future modifications (work with your client).
6. expenses (travel, extra stock photos, etc.)
7. payment terms
8. cancellation
9. warranties (explain that certain things may not work as they expected - mostly for SEO work, etc.)
basically outline the basics and you and your client can agree on details.
posted by grafholic at 6:10 PM on December 14, 2005
mine's pretty basic though. it outlines:
1. pay rate (or sum if project size has been outlined already)
2. relating to above, estimated project completion time.
3. minor modification in what happens if project time exceeds (ie. if this is your fault for not being able to meet project time in such and such, no extra charge, if it exceeds a lot, then client can get discount, if this is due to client bringing in extra work in the middle of the project, then how much extra you'll charge, etc.)
4. copyright and ownership (you'll probably need to work with your client)
5. future modifications (work with your client).
6. expenses (travel, extra stock photos, etc.)
7. payment terms
8. cancellation
9. warranties (explain that certain things may not work as they expected - mostly for SEO work, etc.)
basically outline the basics and you and your client can agree on details.
posted by grafholic at 6:10 PM on December 14, 2005
You can get by as a Sole Proprietorship indefinitely. You do your taxes for consulting with your personal taxes. You will pay a bit more (due to social security). If you earn more than about 30K/year you ought to consider incorporating. You can save a bit of money that way but will need to spend money on payrole (paying yourself) and fees for incorporating.
Buy this book, it covers everything you need to know. Also see an accountant.
posted by schwa at 7:03 PM on December 14, 2005
Buy this book, it covers everything you need to know. Also see an accountant.
posted by schwa at 7:03 PM on December 14, 2005
I have been freelancing for nearly three years now, and you don't really need to incorporate. It does offer certain advantages, but you should probably go ahead and just use your SSN for now, see how it goes, and decide later if you want to incorporate.
If they have some liability concerns, there are agencies you can go through to cover that. But there are other disadvatages with agencies. Email me if you want more details.
I get the impression that you have another, regular job. So it shouldn't be a big deal. But remember to sock away some portion for the taxes you'll have to pay--you'll basically pay whatever income tax rate you already pay plus the FICA taxes that employers usually pay for full-timers. But you can also deduct any expenses from the freelance gig on Schedule C.
And for anyone else who is reading this and considering going freelance full-time--it's a huge lifestyle change with a lot of pros and cons. People underestimate the value of knowing when and how much you'll be paid next. They also underestimate the value of making your own hours and being your own boss.
Anyway, good luck.
posted by lackutrol at 7:37 PM on December 14, 2005
If they have some liability concerns, there are agencies you can go through to cover that. But there are other disadvatages with agencies. Email me if you want more details.
I get the impression that you have another, regular job. So it shouldn't be a big deal. But remember to sock away some portion for the taxes you'll have to pay--you'll basically pay whatever income tax rate you already pay plus the FICA taxes that employers usually pay for full-timers. But you can also deduct any expenses from the freelance gig on Schedule C.
And for anyone else who is reading this and considering going freelance full-time--it's a huge lifestyle change with a lot of pros and cons. People underestimate the value of knowing when and how much you'll be paid next. They also underestimate the value of making your own hours and being your own boss.
Anyway, good luck.
posted by lackutrol at 7:37 PM on December 14, 2005
Also, Aquent used to publish a list of expected rates for particular professions. Not sure if they still do.
posted by lackutrol at 7:43 PM on December 14, 2005
posted by lackutrol at 7:43 PM on December 14, 2005
save your reciepts - biz travel - lunch meetings - parking ... everything... save those suckers.
posted by specialk420 at 8:37 PM on December 14, 2005
posted by specialk420 at 8:37 PM on December 14, 2005
Check out this article, Designers: How Much to Charge.
posted by rob511 at 1:28 AM on December 15, 2005
posted by rob511 at 1:28 AM on December 15, 2005
I've been a freelancer for a long time. Incorporating has never made sense for me.
The only legal issues I've encountered are these:
1. Non-disclosure agreements (NDAs). These are common, and frankly, the existence of an NDA agreement exists even when you've never signed one.
2. Proof that you are not an employee. Apparently there's an issue where some state governments assume that companies are trying to keep regular employees off the books by classifying them as contract labor. So I've had one client require fairly extensive documentation from me to support the fact that I am not, in fact, an employee.
posted by adamrice at 6:33 AM on December 15, 2005
The only legal issues I've encountered are these:
1. Non-disclosure agreements (NDAs). These are common, and frankly, the existence of an NDA agreement exists even when you've never signed one.
2. Proof that you are not an employee. Apparently there's an issue where some state governments assume that companies are trying to keep regular employees off the books by classifying them as contract labor. So I've had one client require fairly extensive documentation from me to support the fact that I am not, in fact, an employee.
posted by adamrice at 6:33 AM on December 15, 2005
Adamrice is mostly correct, but other legal issues can arise. Especially with industries tht are particularly careful about that stuff, like financial services. They might think about liability, and require that you/your agency have purchased liability insurance.
posted by lackutrol at 5:32 PM on December 16, 2005
posted by lackutrol at 5:32 PM on December 16, 2005
This thread is closed to new comments.
I'm a writer/editor, so I don't know how much my going rates will help you, but I will say that for hourly projects my minimum is $20/hour for basic proofreading.
posted by scody at 5:26 PM on December 14, 2005