Forum Moderators: phranque
I was wondering if you could answer a question.
I hope you don't mind answering. Well...
Do you need a *business license* to do freelance web design?
What I mean is do you need a *business license* if you just freelance *occasionally* and not as a a permanent type of job to support yourself?
I was thinking of doing this (freelance web design) only *occasionally* and that's why I asked the question.
Hope to hear from you:)
Please help.
Thank you for taking the time to read this message. :)
frenzy77
The advantage of the LLC is the name - limited liability. Sole proprietorship's are very easy to operate as you can (although not recommended for tax purposes), just use your personal bank account.
If you find your state government webpage, they usually have easy to fillout and either web submit or fax info to set up a business in a short period of time (I think my first business it took me less than 15 minutes to get all the paperwork in order - once I had a clue about what I was doing).
Check the state records, as many internet businesses are still not taxed by states, although you'll end up paying the federal/state taxes for your income.
For freelancers, it's worth the investment to find an accountant and pick their brains for some info - the initial cost can end up saving you a lot in receipt/tax organiation come tax time.
A common practice is to do business as a sole propritership (not incorporated). If you do business under any name but your own (e.g. Doe's Web Design rather that Jane W. Doe) you will usually need to file a "certificate of doing business under a fictitious name", otherwise known as a "doing business as" or D/B/A.
One advantage is that it helps establish the fact that you do operate a business, rather than just do favors for friends (not a legal matter, just an image matter).
The d/b/a is usually filed with the county clerk for a rather small fee. That will also allow you to have a bank account in the business name, or accept checks written to the business name.
Of course, you should check with an attorney in your state to get any information about legal matters.