If you envy with your freelancing friends because they have that perks that you don’t have, such as no boss, work from home, and not not tied to an organization as a whole and you think to leave your full time job now, you’d better think again about what you need to know before leaving your full-time job
There are numerous reasons why someone could contemplate becoming a freelancer rather than a full-time employee. Freelancing can provide you with the freedom to choose your own hours, the ability to earn more money after you’re self-employed, and the ability to work on various projects, to name a few benefits. So, are you ready to leaving your full-time job and start freelancing ?
Despite many benefits offers by freelancing lifestyle, you should also think some factors before leaving your full-time job. Or if you want to test the water you can also take that freelancing as side job to know how does freelancing life before fully leaving your full-time job. Because there are things that you must consider when you are full-time freelancing, what are they?
Different country, different tax regulation, but thing that for sure is when you are a full-time freelancer you must calculate and filing your own taxes. No more HR and accounting department at office intervention for this. You must find out how to calculate it, filling, fill the form, submit the report and pay the taxes otherwise the government will give you penalty. As the tax different in every country, some of you may pay tax monthly, quarterly or even yearly.
As a full-time freelancer, the tax form that you fill is different with the one that you have while become a corporate employee. It will depend on where country do you live in? If you have no idea at all about accounting and tax it’s better to hire a freelance accountant or tax consultant. Indeed, you must spare your income for that budget. But, it’s better to spend money for something worth it, rather than spend your time doing something that you don’t like and you don’t understand.
If you live in a country that provide universal healthcare like in EU or Japan, then it’s your benefit. You can budget your income to pay that national health insurance. But if you live in States where the government doesn’t provide the universal healthcare then it is a problem. You must have money saving to afford it. The price might be different between countries, and if it is too expensive you must be thinking twice about it. However, for freelancer health is number one priority. As being freelancer means you own your business no one going to take care about you except yourself, and you must prepare for that.
Freelancers are not needed to form a limited liability company (LLC). Those who do form an LLC, on the other hand, do so to preserve their personal assets and establish credibility. However, depending on your income, an LLC may save you money on taxes in some jurisdictions. According to Investopedia, LLC owners can select between being taxed as S-Corps or C-Corps, which may help some businesses by lowering their taxes.
Contract with Client
Before they start working together, freelancers should send their clients a contract that details the project scope, pricing, deadlines, revisions, and anything else you wish to include. You won’t need a lawyer to manage your contract, but you will almost certainly need one to draft it for you. Alternatively, you might buy a contract from another freelancer.
Besides healthcare, retirement plan is the second crucial thing to consider. For this matter, different country has different retirement plan. Some country’s government might take role for it, while some other country provided by private or state-owned companies. If you have plan to do full-time freelancing you must do research about it and calculate your income to be spared for retirement plan.
You must a do research carefully for the retirement plan package that you will choose. It must be from the trusted company and has blanket guarantee. There are numerous fraud cases that makes many retirements plan’s money just gone, because of fraudulent and the worst thing the government doesn’t cover that loss.
Now you already have the big picture in your mind about going full-time freelancing. All of these things may appear intimidating or confusing at first, but once you get to know the process, you’ll understand that it’s just a new way of doing things—and that becoming freelance may give numerous benefits for you and your family. If you want to try freelancing, you can just join freelancing platform such as flexgigzz.com to understand how does freelancing works, and you must be careful, because you will addicted to it.
Source : www.realsimple.com
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