freelance payment
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- shtuker
How is it done? Do you just 1099? How do you charge? Thanks.
- shtuker0
more specifically, i'm interested in how you set yourself up as a legitimate freelance business.
- k0na_an0k0
here's the skinny.
if you put more than $3000 (u.s.) into the bank at once over a short period of time the bank MUST notify the gov. So... in order to beat this whole "taxes" thing I never deposit more than $2500 at a time. Then at the end of the year I only record all the doosies (over 3k deposits) for the IRS. (1099)
BUT the good thing.... if you start yourself up as your own business out of your home you can write off phone bills, groceries, heat, water (most of that stuff anyways) computer supplies etc.
- shtuker0
interesting. so then, when handling payment, you specifically say to the client...?
i'm looking for spoon-fed rookie info here.
- k0na_an0k0
1) you need to get a contract.
2) you need to get a contract. (very important)
3) ask for downpayment on projects. try for half. if they're dicks and want to pay all at once deal with it.
4) get yourself a website complete with portoflio, about/history and contact info
5) bask in riches and bitches
- CX0
I have a related question. For instance right now I have a good job and have been there a few years so I could get a house if I tried. If I said screw this and started to work only for myself how do I get a house when the bank may look at me like Im unemployed. When I was trying to get an apartment a few years ago I had trouble because Ididnt really have proof I had a job cuz I only did freelance. So how do you go totally freelance and still be considered to be fully employed?
- shtuker0
this is excellent! Thank you, k0na_an0k. One last question, you don't charge hourly then?
- k0na_an0k0
rarely. usually i just figure out how many hours it's going to take (roughly) and ballpark a figure. but before i do any of that i try to find out the budget of the client.
- kerus0
6) CONTRACT CONTRACT CONTRACT!!! SIGNED, SEALED, DELIVERED, FILED IN A SAFE PLACE!!!
/vent
phew..
- unknown0
So Kona who helps you with your taxes and such? And I thought it was anything you put in the bank over $9000 was reported to the government...because 2k isnt much money
- k0na_an0k0
a lady in the office building here helps me. she's really taught me a lot about the system and how to beat it... or at least try.
my mother used to manage a large bank in the burbs of chicago here and she said it's really 3k.
- shtuker0
do you meet with clients in person or do you try to handle it over the phone/web?
- k0na_an0k0
all of the above. most of my clients come in from word of mouth. first contact is usually via email or the phone. from there i try and meet in person to discuss the project in more detail and to get a better idea as to what they're looking for.
- sauerbraten0
be legal, pay the gov't the 30% in taxes, though write off as much as you can, anything that would be considered a business expense, and remember when you're freelancing, you're charging more because of these issues, generally your gross income is alot more than if you had a full-time job.
- unknown0
oh yeah, and make them sign a contract. That can't be stressed enough. And it makes you more "real business like" anyway. Always get a downpayment, 50%, to start, another 20-30% to actually code and finalize. Then the rest on signoff. That way you usually can break the payments up. This usually keeps everyone honest. I've heard of more clients not paying these days and leaving the develpers out in the cold. Shady bastards
- J_Treehorn0
Good advice, DO NOT try to claim your home, rent etc as a deduction, YOU WILL get burned. fair warning.
- Mick0
my gig.
- fixed price gigs onlly
- 100% payment up front only
- signed contract faxed to me from client at all times agreeing on fixed price (and importantly agreeing on a job spec document). Clauses saying that additional hours will be changed if the client changes more than 20% of the original job brief.
- most of my clients pay me through paypal
- monNom0
I dunno about the states, but in canada, you need a business number (or registered name... you need to register, including the type of business :soleproprietorship, corporate partnership, corporation (LLC aswell in the states... LLC sounds good)
you need a business licence from the city (generally < $50)
if you bill more than $30,000 a year, you must charge gst, and remit it to the gov't... so you need a GST number. (in the US you probably have to charge sales tax and whatnot)
as for banks: you are unemployed... forget about a mortgage, make your riches and pay with cash.
- skonge0
"Good advice, DO NOT try to claim your home, rent etc as a deduction, YOU WILL get burned. fair warning. "
My accountant has done this the past 3 yrs. How will I get burned?
- ********0
this is the best freelance advice thread ever...keep it coming
- sauerbraten0
i believe you can write off part of your rent, as long as you do some of your business at home (as an office) you can also write off office supplies, ie; desks, organizers, chairs, etc. be liberal about it, but make sure it's for business uses.