Going solo as a freelancer has considerable benefits. You get to work your own hours and shape the direction of your career, with the potential of maximizing income whilst avoiding the dreaded 9-5 grind. But with that comes greater responsibility and less security when it comes to finances, so how can you make sure that becoming self-employed is both successful and sustainable? Read on for information about the key procedures and steps in transitioning into freelance work, including deciding which type of business entity works best for you, understanding taxes, and paying yourself fairly. Taking control over one’s professional opportunities can be rewarding but challenging – this guide by Samir H Bhatt provides insight on choosing whether self-employment is right for you as well tips on developing a business model that caters to your individual needs. Let’s dive in!
Samir H Bhatt On How to Become Self-Employed: Key Moves for New Freelancers
Being self-employed can be an exciting and rewarding experience, says Samir H Bhatt. It comes with a number of key steps that must be taken in order for the venture to succeed. To help new freelancers get started, we’ve identified four key moves that should be taken when launching a freelance career:
1. Establishing your business entity: Choosing the right business entity is essential to setting up a successful business venture. The type of entity you choose will determine how much paperwork and regulation you need to maintain, as well as how much legal protection you have from creditors and lawsuits. Common types of business entities include Sole Proprietorships, Partnerships, Limited Liability Companies (LLCs), Corporations, Nonprofit Organizations, and Cooperatives. Each one has different advantages and disadvantages, so it’s important to do your research before making a decision.
2. Obtaining necessary licenses and permits: Every business must have the proper licenses and permits in order to operate legally in their location. These laws can vary from state to state and even from city to city, so it’s important to make sure you know what is required for your area. Common licenses include sales tax permits, occupational licenses, building permits, zoning approval, health department permits, business certificates/registration documents, and more.
3. Setting up a system for tracking expenses: Keeping track of all of the income and expenses associated with running your freelance business is essential. Not only will it help you stay organized, but it will also help you save money at tax time. It’s important to set up a system for tracking expenses so that everything is documented and accounted for. This can be done with a basic spreadsheet or an accounting software program like QuickBooks or FreshBooks.
4. Setting up a retirement plan: According to Samir H Bhatt, one of the major benefits of working as a freelancer is having the freedom to choose how and where to invest your money; however, this can also mean neglecting to save for retirement if not managed properly. As such, it’s important to establish a retirement plan early on in order to ensure that you are taking advantage of all available options and setting yourself up for financial success in the future. Popular retirement plans for freelancers include IRAs, 401Ks, and SEP IRAs.
Samir H Bhatt’s Concluding Thoughts
These are just a few of the key moves that need to be taken when launching a freelance career. According to Samir H Bhatt, there are numerous other steps involved in setting up a successful self-employment business venture, such as researching insurance coverage, establishing an online presence, and marketing your services, but these four key moves should get you started on the right track.