From Finances Wire, Filiyana McGraves discusses the differences between being self-employed and registering as a small business and shares some of the benefits of being a small business. Filiyana writes:
Unfortunately, your status as self-employed or freelance might be hindering your progress in the business world. For a start, there are many large companies that would welcome your work but only if you have a registered business number. This is for their own tax and accounting purposes. It is usually an internal policy rather than one governed by law, but you might still be pushed aside in favor of a formally registered business.
Does Forming A Company Mean I Have To Work Like A Formal Company?
In terms of your working hours, that remains entirely up to you. Have a look at websites like topuniversities.com/blog to see what the average hours worked are around the world. How many clients or customers you choose to work with is also up to you. How you manage your income will probably need to change though.
Usually, when you register a company, you need to have another person registered with you to formally structure the business. This person does not need to collect a wage. In some cases, they don’t need to have a share in the company either. But there is a chance that their finances might be checked should you choose to work with certain businesses in a professional capacity.
As for your wage? You should use a formal accountancy service, and make sure your books are kept professionally. You might be advised to hold profits in an account to help you grow the business. Your income is likely to be a fixed sum. When you’re a freelancer, you might not even use a business bank account. Those days are over when you register a formal company. Now everything is likely to be filed for public viewing. That might include your salary.
Isn’t Registering A Business Hard Work?
You’re probably used to making decisions about your business already. You’ve filled in a domain name application and chosen your company name. Registering your business as a formal company can be just as quick and easy. And the cost might be comparable. Visit websites like yourcompanyformations.co.uk to find out more about officially forming a company. There are legal responsibilities and obligations when you do so, but these might be in your best interests anyway.
Read the full story at Freelance or Small Business?