Embrace the freedom of freelancing, and banish the administrative burden
Invoicing, tax obligations, contracts, even the simple act of getting paid: all this can feel so overwhelming for an independent contractor. Fortunately, there are solutions to eliminate the time and frustration of managing admin. Use this guide as a blueprint to get set up to take payments with speed and confidence so you can put your focus back where it matters: your clients.
As an independent contractor, you’re responsible for handling everything about your business: getting and keeping clients, working on projects, handling admin, and marketing your business. You are also responsible for tasks that might lie outside your expertise, such as writing up contracts and handling taxes.
It can be nerve-wracking to draw up a contract if you’re unsure of what employment laws might impact your business, especially if your client is based outside your country. You may also find yourself wondering how to get paid without huge processing fees getting sliced out of your hard-earned paycheck.
We are here to assure you that you can manage all of these things. In fact, getting set up and paid as a freelance contractor can be fast, easy, and efficient — no matter where your clients are based.
This guide is full of practical support for independent contractors, especially if you’re new to being the boss of your business. We’ll explain how you can set up a process to manage your work and discuss how automation can make this process easier.
We’ll discuss the four scariest problem areas for freelancers and show you how to manage this side of your business with ease:
Contracts
Payments and fees
Invoicing
Tax
Ready to learn more about simplifying your freelance business?
Let’s start at the very beginning: setting up your business.
Managing independent contractor taxation obligations
How to set up the right business registration
To begin working as an independent contractor, you’ll first need to choose a legal structure for your business. This will dictate what your tax and legal obligations are. The structure you choose will depend on where you’re claiming tax residency. Countries, and in some cases, specific regions have their own laws governing independent contractors.
Most countries offer a few common options:
Individual entrepreneur. This is a simple structure for independent, individual contractors. In some countries, like France, there is a distinction between the individual and the business; in others, there is not.
Partnership. A partnership agreement. Often there is no separation between the partners as individuals and the business entity.
A limited liability company. A formal, legal entity that is separate from the individual running it. In most cases, all income and losses are attributed to the company as opposed to you personally.
Other options may exist depending on the country in which you are operating. Australia, for example, offers a trust model, in which a trustee manages a business and all of its activities on behalf of beneficiaries.
There are pros and cons to each of these structures, but most independent contractors choose the individual entrepreneur model, as it is fairly simple to set up and operate.
For more information about labour laws in a specific country, check out Remote’s Country Explorer — our global hiring guides are packed with useful information that can help you establish your freelance business.
Read more on how to become an independent contractor
Take charge of your business with Remote Freelancer Hub
Manage your clients, organise contracts, invoices and get paid — all in one place.
Accounting requirements for independent contractors
As an independent contractor, you do not need to publish financial statements each year. However, you do need to keep organised records of your accounts, including all your client invoices and business purchases, so that you can track income and manage taxes.
You can manage these records yourself using an accounting or bookkeeping tool, or hire a professional bookkeeper or accountant.
You should also consider opening a separate bank account for your business expenses; some countries may require a business bank account once your turnover exceeds a certain amount.
5 ways Remote makes life easier for contractors and their clients
As you can see, there’s a lot to take on board when setting up as an independent contractor. Remote can help you with many of these challenges, allowing you to focus on growing your business and delivering to your clients. Here’s how:
Learn more about how Remote can help you as an independent contractor here.
Onboard with Remote and get set up in minutes
Having the freedom and flexibility to work on your own terms is liberating. But your administrative responsibilities can distract you from what you really want to be doing: helping your clients, getting paid quickly, and growing your business.
By using a stable, trusted platform like Remote, you can manage these obligations quickly and efficiently, allowing you to focus on your business goals. We help you:
Invoice efficiently
Get paid quickly and easily by clients anywhere in the world
Produce compliant contracts
Manage your taxes
Our platform makes it quick, simple, and seamless to get started as an independent contractor — we guide you through onboarding and the steps involved to validate your identity for security purposes. You’ll also be prompted to upload any required tax documentation for secure storage.
Learn more about how Remote can save you — and your clients—- time and resources.
Get started with Remote today.