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Any freelance web designers here? - Do you register yourself as a freelance


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#1 thelordofdarkness

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Posted 22 April 2013 - 06:42

Hi guys, I was wondering if there is anyone who does freelance websites here? Be it full-time or on the side?

I do it on the side, but I choose which projects I want to take. Usually it's for nominal fee's, nothing more than $2-3k

Now I've secured a freelance deal, one which is at $8k and one which is $20k - How do I do this in terms of payments? Do I have to register myself somewhere as a freelancer with regards to things like "tax"? For amounts a bit higher like this I guess I also have to invoice the companies?

Can someone advise me on these matters?

Thanks


#2 ACTIONpack

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Posted 22 April 2013 - 21:14

If you are talking about taxes then you will need to file it as an MISC-1099. Most of the time, freelance people ask for half now and half to upload the site when finish.

#3 Original Poster

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Posted 22 April 2013 - 21:22

Hi guys, I was wondering if there is anyone who does freelance websites here? Be it full-time or on the side?

I do it on the side, but I choose which projects I want to take. Usually it's for nominal fee's, nothing more than $2-3k

Now I've secured a freelance deal, one which is at $8k and one which is $20k - How do I do this in terms of payments? Do I have to register myself somewhere as a freelancer with regards to things like "tax"? For amounts a bit higher like this I guess I also have to invoice the companies?

Can someone advise me on these matters?

Thanks


if its on the side dont pay tax ... for me I dont have to pay tax unless I earn a certain amount .... then if I do i have accountants available to keep me under the bar with write offs .... sadly im to busy to side line that much money anyway

and yes I also have a standard invoice for each situation i just fill in the blanks of the invoice i made around 3 years ago

#4 ACTIONpack

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Posted 22 April 2013 - 21:29

if its on the side dont pay tax ... for me I dont have to pay tax unless I earn a certain amount .... then if I do i have accountants available to keep me under the bar with write offs .... sadly im to busy to side line that much money anyway

and yes I also have a standard invoice for each situation i just fill in the blanks of the invoice i made around 3 years ago


thats anything over $600. $8k and $20k he will never get away from the IRS. The company that is paying for the website will put it in their taxes and will come back to hime. If he does not put it down, he will get audited!

#5 Original Poster

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Posted 22 April 2013 - 21:32

thats anything over $600. $8k and $20k he will never get away from the IRS. The company that is paying for the website will put it in their taxes and will come back to hime. If he does not put it down, he will get audited!


well here he can just set up his own "company"....you dont get taxed here as a company unless you earn a net of i think 350k???

#6 Kami-

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Posted 23 April 2013 - 10:47

well here he can just set up his own "company"....you dont get taxed here as a company unless you earn a net of i think 350k???

I'm going to assume from the Milton Keynes speedtest in your signature you're from the UK, in which case - your above statement is incorrect.

Corporation Tax kicks in at £300,000; however there are other taxes you pay before this amount - one example being VAT after £77,000.

Also your earlier comment about if it's on the side don't declare it, any individuals "income" is subject to income tax (above the tax free amount provided by your tax code), failure to declare income is tax evasion.

#7 Original Poster

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Posted 23 April 2013 - 15:12

I'm going to assume from the Milton Keynes speedtest in your signature you're from the UK, in which case - your above statement is incorrect.

Corporation Tax kicks in at £300,000; however there are other taxes you pay before this amount - one example being VAT after £77,000.

Also your earlier comment about if it's on the side don't declare it, any individuals "income" is subject to income tax (above the tax free amount provided by your tax code), failure to declare income is tax evasion.


well if he sets up a corp... his corp wont be earning 77k a year this is what I mean...

#8 vetDirtyLarry

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Posted 23 April 2013 - 15:19

If this is something you plan on doing seriously and will be bringing in those larger type contracts, you should seriously look into creating an LLC and becoming a proper company, getting an accountant, etc. etc.

IF you decide not to declare the tax, as stated that is tax evasion, so you better be damn sure the people you are working with are in agreement to do it under the table, or else you will eventually get caught, and it will not be pretty.

#9 Krazzer

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Posted 23 April 2013 - 15:46

Un-official thoughts...

You don't have to register as a business, you can always do business as yourself and all income would just pass through as personal income. You still need to keep good books (invoices, statements, reciepts, etc.) so you know what income came in from where.

If you are a "contractor" and make more than $600 I think it is, then you'd have to get to the whole 1099 stuff.

The biggest reason for forming a company like an LLC or Corporation is that it helps protect you from losing all your personal stuff (house, car, personal belongings) if you happen to get sued. If you are an actually company, they would sue the company and could only (usually) walk way with your business assets, but you'd keep your personal assets.

If you form a company there are some tax benefits, but there are also some fees typically. I'd suggest working with a lawyer/accountant if you decide to setup an actual company just to make sure everything is in order. You don't want to get in trouble with the IRS.

That has been my understanding and how it's worked for me in the past.

Take it or leave.
Cheers!

#10 fusi0n

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Posted 23 April 2013 - 15:58

If you are talking about taxes then you will need to file it as an MISC-1099. Most of the time, freelance people ask for half now and half to upload the site when finish.


Make sure get half up front.



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