The following post is an excerpt from my new e-Book series, How to Become an e-Learning Freelancer. The three volumes in the series are designed to be easy-to-use, practical guides to getting your freelance e-Learning career off the ground. Learn more here!
When you first become an e-Learning Freelancer, there are quite a few big decisions you’ll need to make around legally establishing your business. Some of these choices will have big impacts on how much you get taxed, as well as how much personal risk you’re taking, so it’s important to be thoughtful, well informed, and intentional about them. In this post, I’ll be discussing what I believe are the most important ones, and highlighting the areas you’ll want to research ahead of time.
Before we jump in, please know: I am not a legal or financial professional, and the information I’ll be sharing is not a substitute for the advice of a lawyer or an accountant. Do not act on any of the below without doing research on your own or consulting a professional—the laws and best practices will vary from state to state, and in some cases, city to city. My intention here is to get you thinking about the kind of questions you’ll need to answer, and at the risk of beating a dead horse: Nothing beats the advice of a trusted professional.
Making the decisions about how to structure your business can be overwhelming, and frankly, boring, but remember that by investing time into making the right decisions for yourself, you’ll be saving yourself hours of your own time down the line and avoiding potential risks that could have pretty dire consequences. If you’ve been reading this blog series up to now, you know that my aim is to help get you through all of the red tape and minutiae so that you can focus on your creativity—and in that spirit, this post has some can’t-miss information!
There are three key areas to consider:
- Separating your business and personal finances;
- Selecting the right legal business structure;
- Establishing the most beneficial tax payment practices.
[This topic continues in my e-Book series, How to Become an e-Learning Freelancer.]