subject: 5 Considerations For Working As Freelance Contractors [print this page] 5 Considerations For Working As Freelance Contractors
The dream of becoming your own boss is one that often gets people carried away. However, it is a lifestyle that is definitely not for everyone. If you are not a self motivated individual, it's entirely possible that your way of life could go down the tubes. The reason for this is the simple adage: If you don't work, you don't eat. People who make the mistake of thinking they will have to work less working for themselves compared to others are the most likely candidates for failure. Before entering the world of freelance contractors, make sure that you have a firm grasp on the following considerations: How complicated is your tax situation? It is easy to pay taxes when they are automatically deducted from your check. However, when you work for yourself, there is not an employer payroll department to hold your hand through the process. That's why understanding of tax law is essential to your basic survival. Of the first priorities that you need to make, paying the government is the one most likely to keep you out of trouble. Do you have the discipline to set aside earnings for taxation and retirement? When you can barely keep your head above water through gross pay, there is a real temptation to forgo withholdings for all necessary taxes and retirement planning. However, these expenses can sneak up on you and cause a world of hurt if left to their own devices. Make certain that you have the future in mind as well as the present. What about accountancy and tax expertise? Depending on the size of your business, these two areas can be a real headache. On the one hand, if your business is big enough to hire a professional, then the tax situation gets increasingly more difficult. On the other, if you are barely making ends meet, these full-time jobs on top of your full-time job can suck the wind out of your sails when it comes to freelance work. Are you able to balance the need for umbrella services with the work that you do on a daily basis? An umbrella company often simplifies the tax and accountancy process for you, but you will still want to learn as much as you can in order to protect yourself. Do you find work more difficult with the added burden of outsourcing on your shoulders? Are you the type of person who easily trusts another human being? If so, you may not have any problems in this area, but mind the last consideration. If you require the help of an umbrella company, have you done your homework? Not all companies are trained for tax and accountancy. Make sure the umbrella company with which you are doing business is not just another freelancer looking to make ends meet. Seek qualified credentials and the rest will take care of itself.
