I know it’s really easy to start a company these days (just registering the name and getting the license etc.) but is it a good idea for web designers to start their own design company, or are they better off freelancing forever…?
On the one hand, a company would seem to appeal more to bigger clients, but is that true? On the other hand, maybe having a company is more work than it’s worth. Does anyone have any thoughts on this?
well i could be wrong, but i think you have to pay a minimum amount taxes if you own a company no matter how much money you make.
i think once you build your portfolio up you should look into it.
Why not do both, they are basically the same thing. My wife does both and uses me for the websites. But markets herself as a company even though its just her and me sometimes right now.
there are definate advantages to starting a company. You are issued a tax ID#, which makes you more reputable in the eyes of clients. Just about everything you buy or spend money on is a tax deduction. There are alot of government programs to aide small business. Plus more but those are the ones I just thought of.
Starting a company would be a lot of work, unless you have a large portfolio and alot of time. I would say go with freelancer for the moment, both have there advantages…
start out by first doing a DBA (doing business as) in the name of your future to be company. It is very cheap and just requires min paper work. Then you can accept checks made out to “Such-and-Such Design Co.” just doing that will bost your image in the eyes of larger clients - makes you look more serious and like the real-deal. Then in the future as everything grows, you can step up to being a full fledged company. I really think this is the best route, it allows you to slowly step up. Its ben working great for me and I am currently in the DBA phase.
peace
DDD and Ryall are right, the tax write offs are great and the DBA option is very easy to do.
Thanks for all the great advice!!
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