help setting up online freelance business

Alexandre Berger wrote:
.........
How will I receive payments?

For that matter I know I have to have my own business,....

Richard Creech wrote:

Depending on what state you are doing business in, there are three basic choices of business organization: 1) a sole proprietorship, 2) a partnership, or 3) a corporation. Many states also have forms that combine certain aspects of these, such as an LLC or limited liability company. The three main factors that should influence your choice are 1) simplicity, 2) liability issues, and 3) tax matters. Generally speaking, for someone just starting out a sole proprietorship is usually the best way to go. It is the easiest to start and there are few legal formalities required. On the downside, the law will treat your company and you personally as the same entity, and your own personal assets can be attacked to satisfy any business liability. Partnerships and corporations require more formality, corporations particularly so (e.g. you have to register with a state, have formal bylaws, hold formal stockholder meetings, have formally elected officers, etc.) and the tax issues are more complex. Partnerships require a contract, and of course at least one other partner. Partners are, like sole proprietors, each liable for the debts of the company. A big advantage of a corporation is that you personally (as a stockholder) would not be liable for corporate debts. However, the downside, apart from the need to observe corporate formalities descibed above, is that your income is taxed twice, first at the corporation level and then a second time when it is distributed in the form of dividends to the stockholders (i.e. you). An LLC (limited liability company) is available in many states for small businesses, and this usually allows many of the tax and simplicity advantages of corporations but without all the legal formalities.

Hope this helps!

Balasubramaniam wrote:

Many of us receive payments via paypal and moneybookers. You too should register yourself with them if you haven't already done so.

http://www.moneybooker.com
http://www.paypal.com[/quote]

Thank you i'll check money-bookers, but for paypal I was stopped at the different types of account figuring that business was the proper one for me but realising to open one I needed a company since they ask "company name" in required fields, how do you do it?

Woodstock wrote:


Welcome!

Since you're in the US, your state might have a website on just that topic, something like "starting your own business". I found one for Maryland, where I might go in a year or so (it's a dot-org site). You might also want to contact your nearest Better Business Bureau for information, local Chamber of Commerce or just look up the official website of the state you're in and check there, or the links for anything useful about starting your own business. Also talk to your bank, I'm sure they will be very interested in helping "grow" your business - it's good for them, too! In any event you'll have to register your business with the IRS - very important in avoiding problems later, but I don't know how that works, because I've never had my own business in the States.

This should get you started...

Good luck!

sarahl wrote:

Hi Alexandre

Why a corporation if you're a freelancer?

If you're on your own, all you have to do is file the right return at tax time.

On the other hand, if you're planning on starting your own agency, you may want to start with an LLC, in which case you should probably consult with an accountant and an attorney.

Corporations are heavy-duty companies, with a board of directors, stock, the whole nine yards. That's the way to go if you want to start a HUGE agency.

However, since you mentioned freelance work, self-employed is probably the best option for you.

HTH

Sarah

Alexandre Berger wrote:

I want to start translating on my own, I have started developping my web site joined Kudoz, but I realize i'm facing another kind of issue.

How will I receive payments?

For that matter I know I have to have my own business,....

That's where I turn to you out there, is corporation what I should go for or are there better ways for freelancers, could you show me my way towards legitimately, legaly receiving my first payment for translation services?