How to Become an Independent Contractor: 4 Essential Tips
Being an independent contractor can be a very fulfilling and rewarding experience.
Growing your own business into something that can support you and your family is a fantastic achievement and something to be proud of.
As an independent contractor, you can have the freedom of creating your own schedule and choosing who you work for.
There is also an increasing demand for freelance contractors. Companies are turning to independent workers as it can save them money on benefits and payroll taxes. They can also just pay a contractor for a set amount of time and not have any of the other costs associated with maintaining a full-time employee.
But how do you become an independent contractor? We’ll give you 4 essential tips to help you get started on your journey.
Here’s What We’ll Cover:
1. Choose What You Want to Do
This is one of the basic steps but it’s also a critical step.
You need to be careful when choosing what field you want to go into. Starting off as an independent contractor is difficult. You need to be able to set yourself apart from the competition and be aware of what you bring to the table.
Therefore you need to pick a profession that you are passionate about, and something that you have a lot of knowledge or skill in.
It’s also a good idea to create a detailed business plan that will outline your intentions. This can also be used to attract investors and funding.
2. Pick a Good Name
A good name is vital. Whether you go down the straightforward, sensible path or pick a name with a good pun to catch the eye, your name is what will define you as a business.
Consider what it is that you will do and what services you offer, then pick a name that can encapsulate that.
When potential clients read your business name, they should be immediately aware of what you will be offering. There’s no point in having a catchy name if it doesn’t help describe your business.
Therefore, having a solid understanding of who you are and what you can offer is vital when it comes to one of the first steps of building your business.
3. Get the Proper Licenses
Some states or counties will only let you start your business if you have the proper business license. This is especially the case if you are doing something highly specialized or dangerous.
Most licenses can be obtained by simply filling out a form and paying a small fee.
Even if you are just starting out and are not sure of your direction, you should take the time to get your licenses in order. The last thing you want as a blossoming business is having to pay unnecessary fees and waste time dealing with the paperwork.
To apply for your forms, go to your local city clerk’s website to download the forms. You can also contact your trade association who should point you in the right direction.
4. Keep a Track of Your Taxes
As a business owner, keeping a track of your business expenses and your invoices is a key step in running your own business.
When it comes to your business taxes, you’ll want all of your additional documents in order. This is so that you can process your taxes easily when the tax time arrives.
It’s recommended that you speak to an income tax professional or an accountant about your tax payments when setting up your business.
Should you be a sole proprietor? A Professional Limited Liability Company? It’s important that you get this right as a tax audit could be coming your way at any point.
Starting your own business is a rewarding experience that can be hugely profitable.
If you approach it with the right state of mind then there’s no telling the success you could have.
But as with anything, it’s important to do your research and ask for help if you need it. Your ability and your knowledge can make or break your business, so make sure that you are doing all you can to stay up to date.
Are you looking for more business advice on everything from starting a new business to new business practices?
Then check out the FreshBooks Hub.