Going Self Employed

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Going Self Employed – How Do Self Employed Workers Register in the UK and USA?

Going self employed can be a different journey for each individual depending on where you live and what type of work you want to start doing.

It is becoming increasingly popular to start up an online business and work from home part-time.

Many people begin with a networking marketing company, or do training on affiliate marketing.

Sometimes people begin their own small eCommerce website, selling on Amazon, Shopify or eBay.

Digital business is where we specialise so here are some tips when you are setting up your own business.

Setting up your own business will be great fun and it is the best feeling in the world when the sales begin to come in slow and steady at first, and then rolling in after a while.

However, from experience we know that many people forget the tax registration completely. It is important to register for the right taxes and manage this yourself before it is too late if you are going self employed.

The reasons to register for self employment taxes are primarily to avoid penalties in both the USA and in the United Kingdom.

There are however some differences between the two processes as well as the rationale behind them.

What greatly differentiates the way that people register as self-employed in the two countries is the fact that in the United Kingdom, you are dealing with a single level of government.

In America, the self employed person must register with both the federal government and the state government.

State level processes for registering as self employed can vary but tend to be similar across the country.

Going Self Employed in the UK

In the Unіtеd Κіngdоm, аn іndіvіduаl wаntіng tо rеgіstеr аs sеlf еmрlоуеd nееds tо соntасt НМ Rеvеnuе аnd Сustоms (НМRС), whісh controls the taxation.

HMRC makes it very easy to register with an online registration procedure or by telephone.

The Self Employed Helpline can be reached on 0300 200 3504.

Some of the information required to complete the registration includes your national Insurance number, complete contact information, and the date that your self employment began.

Dealing with HMRC is the first step for individuals, also called “sole traders”, as well as partnerships.

In a partnership each partner must register for the Self Assessment taxation to register as self employed.

But if a limited company or another type of corporation is being registered, the first step would be to register with Companies House instead. They will  then issue a company certificate and it links to the enrolment for HMRC corporation tax.

 

Registering as Self Employed in the United States

First off, not everyone registers as self employed in the United States.

For many self employed individuals, simply filing the correct tax forms is all they need to do.

If someone does wish to enrol, the procedure usually begins with registering a business with the state in which the individual resides.

The busіnеss саn bе а Ѕоlе Рrорrіеtоrshір, оr а Lіmіtеd Lіаbіlіtу Соmраnу, with one person as the owner.

Company registration is usually handled through the office of the Secretary of State. Nearly every state has an online registration or downloadable forms to be mailed.

Make certain to check if your county or city requires any other special licenses.

Once the company or company is registered with the state and local governments, the next step to register as self employed is to obtain an Employer Identification Number from the Internal Revenue Service (IRS) if you do not have one already.

This procedure can be completed online at the IRS website, by downloading the form and faxing or mailing it.

What type of business are you setting up when going self employed? Share it in the comments and add a link to your website! 

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