A lot of people ask, ‘Can I freelance without a business license?’ Different locations will have different regulations and people should check with local business authorities. However, it is better to be safe than sorry, as free workers can be retroactively cut without a business license. Freedom is one of the main reasons many people choose to work independently, but freelancers should not forget that they are still subject to certain regulations which may include obtaining a business license.
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Business regulations vary based on the state and country you live in. The simplest solution is to check with your local authority. Business licenses are typically issued by your local chamber of commerce, municipal tax office, county clerk, or department of public works.
Whether Freelancers need a business license depends, in part, on the services they provide. Graphic designers are not normally required to be licensed if they work under their names and report business earnings as personal income. But cosmetology is a specialized trade and freelancers must be licensed. Licenses may be subject to federal, state, and local regulations, so location affects requirements as well. In Philadelphia, even if a special business license is not required, a freelancer needs a Business Privilege License. But in Washington D.C., a volunteer who does not offer specialized services does not need a general business license. To determine the needs for your services in your area, use the Small Business Administration’s “Permit Me” tool, which provides data based on zip code and industry.
What if you don’t get a business license?
If you are operating without a license in a state that requires one, you may be fined for your ignorance. You can be fined retroactively if local business authorities take a breath while you have evaded the license. Some places will even be interested in fines. Suffice it to say that the number can grow rapidly. Even a small fine can make a person self-employed. The most useful option is to be proactive in the process and approve the file for this license in advance. Most freelancers apply for individual ownership, but your city can help you find the right choice.
The cost to obtain a license is typically between $ 34 and $ 100. Some states require this annually, and some places only ask you to pay this fee once.
Free to get on with your business
Once you have obtained a business license, you can get on with what is really important – work! Whether you’re a freelance writer, accountant, or social media marketer, you don’t want to waste time and energy if feeds are coming.
Instead, prioritize this process early in your new career to ensure compliance and, ultimately, success in your endeavors.
Importance of Freelancers
The independent workforce is growing rapidly. And as it becomes more profitable, more and more people are ditching traditional jobs to work full or part-time as freelancers.
In fact, some studies suggest that more than 50 percent of the workforce will be in the next 10 years.
It is easy to see why this trend occurs. Being self-employed gives people the opportunity to work when and sometimes where they want.
And thanks to companies like Uber, Lyft, DoorDash, Grubhub, and many more, it’s also an opportunity for people to try new jobs and earn some extra money, or maybe make a living.
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