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1. Hire an accountant. In my experience they pay for themselves.
2. Talk to an attorney, see about Sole Proprietor/LLC/SCorp
3. Talk to the accountant about the Attorney's advice.
When I went that route, the Attorney wanted me to go LLC, the Account
S Corp. It probably varies by your situation and location what is best
for you. Weight the pros and cons (for me S Corp saved a lot, while
adding some admin overhead).
Make sure you are paying estimated taxes (see #1). I was burned badly
my first year of freelancing come tax time. The IRS likes to add
interest and penalties. Actually this should be #1... or the Zeroth
On 6/7/07, David Loveless <daveloveless -at- gmail -dot- com> wrote:
> Due to some recent changes in life, I've decided to give the freelance
> route a try. I've been writing for seven years and have finally gotten
> tired of the bureaucracy and other pains that come with your standard
> 8-5. Believe me, this has been a long time coming.
> Over the last three years, I've taken on small freelance jobs as a way
> to get my feet wet. Recently, I signed on to complete a much larger
> project. Today, I accepted my first true contract (3 month gig with
> potential for more).
> So, I've dropped the hook, the fish have nibbled.... now what?
> I'm just looking for any general advice you might give me. I want
> anything and everything from pursuing the next contract to handling
> disputes to writing the contract to, well... anything. Any good books,
> articles, or websites would also be greatly appreciated. I know that
> freelancing is not exactly a walk in the park, but I'm ready to give
> it a whirl.
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