Even if you don’t have the capital to start a large business right now, you can still make money without being an employee. Try becoming an independent contractor and you’ll see that there are several advantages to doing it. Here are some of them:
- You can do it full-time or part-time. Even if you are an employee, you can still earn extra money by becoming a part-time independent contractor. Just make sure you are not breaching any contracts with your employer.
- It might be easier to be hired as an independent contractor rather than a full-time employee.
- Employers usually see the benefits of hiring an independent contractor, including the following:
- It’s more cost-effective in most situations.
- An employer only has to pay taxes if there’s work for the independent contractor.
- You’re expected to provide the tools and equipment for the job, so the employer saves money there, too.
- The employer can end your relationship without breaking the law.
To get started on being an independent contractor, here are the simple steps:
Use a name other than your own
To present a more professional name to clients, it’s advisable to pick a name. Use a fictitious business name or a Doing Business As (DBA), and register it. Ask your county clerk about it. A good name quickly describes what you do. You’ll also need business cards and an invoice showing your DBA.
Apply for a license
This may be required in every city, county, or state. To ensure you’re operating legally, ask your county clerk if you should obtain a business license. In some cases, a license also makes an independent contractor more attractive to employers.
File your taxes
Equinox Business Solutions notes that it’s important to understand how to do your taxes, just so you don’t get in trouble with the IRS. To make sure you don’t make mistakes in keeping and balancing your books and filing your taxes, think about hiring an accountant or a company that offers bookkeeping services for independent contractors. This will help you do your job without worrying about most of the clerical aspects.
Use these steps to establish your practice as an independent contractor. As you get better at it, and as you spend more time working as an independent professional, you’ll realize how beneficial it really is as a career.