| Hi Taylor
- What's the first step for becoming self-employed? I'm ready to turn
my side hustle into a full-time gig and want to make sure I'm handling
things in the right order. - Deborah
Hi Deborah - Congratulations on the transition! You're about to
enter an exciting phase of your life, and I'm glad you're taking the
time to make sure you do it right.
Each business is a little different, so the order of affairs can change
from one business owner to the next. I'll lay out three of the early
tasks and you can figure out the order in which you approach them.
on a business structure. When your freelance business becomes
your primary source of income, you need to decide what type of
company you're actually running. Since it sounds like you've been
doing the side hustle for a while, you likely have a sole proprietorship
and get 1099'd for all your work. There's no reason why you can't
continue with this business model, but it's worth considering
forming an LLC in order to better protect yourself in the long
run. Some people avoid registering businesses because they don't
want to pay the annual fees, but those who are already receiving
steady income are usually better off with a more detailed business
2. Secure your name and brand. As you take your self-employment
from part-time to full-time, you want to make sure everyone can
find you and communication is seamless. This requires an identifiable
business name and a website attached to that name. Depending on
what you do, your website can be as complex or simple as you want,
but that initial landing page has to exist for clients searching
for information. And, since your preferred web address might already
be taken, this is an opportunity for you to figure out what you'll
call your business and how that name fits with your overall brand.
The earlier you make these decisions, the easier it will be to
promote and attract new customers.
3. Figure out finances. You don't want to wait until tax
time to think about tracking your spending and distinguishing
between business and personal expenses. You might not need a business
checking account - and might not yet be able to open one anyway
- but you do need a clear system for keeping everything in order.
It's easy to let all your spending merge together when you run
a sole proprietorship, but a clear delineation between work and
everyday expenses will make your life much easier.
| You can probably
tackle each item on this list concurrently, as they're all relatively
intertwined. If you want more info, there's a post at GoFarWithKovar.com
discussing this very topic. Best of luck!
© Taylor Kovar
February 19, 2020
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securities, investments, or investment strategies. Investments involve
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before implementing any strategy discussed herein. To submit a question
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