help setting up online freelance business
Thread poster: Alexandre Berger
Alexandre Berger
French to English
+ ...
Feb 4, 2006

I want to start translating on my own, I have started developping my web site joined Kudoz, but I realize i'm facing another kind of issue.

How will I receive payments?

For that matter I know I have to have my own business,....

That's where I turn to you out there, is corporation what I should go for or are there better ways for freelancers, could you show me my way towards legitimately, legaly receiving my first payment for translation services?


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Balasubramaniam L.  Identity Verified
India
Local time: 03:35
Member (2006)
English to Hindi
+ ...
Register with paypal and moneybookers Feb 5, 2006

Many of us receive payments via paypal and moneybookers. You too should register yourself with them if you haven't already done so.

http://www.moneybooker.com
http://www.paypal.com


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Woodstock  Identity Verified
Germany
Local time: 00:05
German to English
+ ...
Your own business Feb 5, 2006

Alexandre Berger wrote:
.........
How will I receive payments?

For that matter I know I have to have my own business,....


Welcome!

Since you're in the US, your state might have a website on just that topic, something like "starting your own business". I found one for Maryland, where I might go in a year or so (it's a dot-org site). You might also want to contact your nearest Better Business Bureau for information, local Chamber of Commerce or just look up the official website of the state you're in and check there, or the links for anything useful about starting your own business. Also talk to your bank, I'm sure they will be very interested in helping "grow" your business - it's good for them, too! In any event you'll have to register your business with the IRS - very important in avoiding problems later, but I don't know how that works, because I've never had my own business in the States.

This should get you started...

Good luck!


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Richard Creech  Identity Verified
United States
Local time: 18:05
French to English
+ ...
Different Types of Business Entities Feb 5, 2006

Depending on what state you are doing business in, there are three basic choices of business organization: 1) a sole proprietorship, 2) a partnership, or 3) a corporation. Many states also have forms that combine certain aspects of these, such as an LLC or limited liability company. The three main factors that should influence your choice are 1) simplicity, 2) liability issues, and 3) tax matters. Generally speaking, for someone just starting out a sole proprietorship is usually the best way to go. It is the easiest to start and there are few legal formalities required. On the downside, the law will treat your company and you personally as the same entity, and your own personal assets can be attacked to satisfy any business liability. Partnerships and corporations require more formality, corporations particularly so (e.g. you have to register with a state, have formal bylaws, hold formal stockholder meetings, have formally elected officers, etc.) and the tax issues are more complex. Partnerships require a contract, and of course at least one other partner. Partners are, like sole proprietors, each liable for the debts of the company. A big advantage of a corporation is that you personally (as a stockholder) would not be liable for corporate debts. However, the downside, apart from the need to observe corporate formalities descibed above, is that your income is taxed twice, first at the corporation level and then a second time when it is distributed in the form of dividends to the stockholders (i.e. you). An LLC (limited liability company) is available in many states for small businesses, and this usually allows many of the tax and simplicity advantages of corporations but without all the legal formalities.

Hope this helps!


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xxxsarahl
Local time: 15:05
English to French
+ ...
Freelancer or agency? Feb 5, 2006

Hi Alexandre

Why a corporation if you're a freelancer?

If you're on your own, all you have to do is file the right return at tax time.

On the other hand, if you're planning on starting your own agency, you may want to start with an LLC, in which case you should probably consult with an accountant and an attorney.

Corporations are heavy-duty companies, with a board of directors, stock, the whole nine yards. That's the way to go if you want to start a HUGE agency.

However, since you mentioned freelance work, self-employed is probably the best option for you.

HTH

Sarah


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Alexandre Berger
French to English
+ ...
TOPIC STARTER
Thank you for the details Feb 5, 2006

Richard Creech wrote:

Depending on what state you are doing business in, there are three basic choices of business organization: 1) a sole proprietorship, 2) a partnership, or 3) a corporation. Many states also have forms that combine certain aspects of these, such as an LLC or limited liability company. The three main factors that should influence your choice are 1) simplicity, 2) liability issues, and 3) tax matters. Generally speaking, for someone just starting out a sole proprietorship is usually the best way to go. It is the easiest to start and there are few legal formalities required. On the downside, the law will treat your company and you personally as the same entity, and your own personal assets can be attacked to satisfy any business liability. Partnerships and corporations require more formality, corporations particularly so (e.g. you have to register with a state, have formal bylaws, hold formal stockholder meetings, have formally elected officers, etc.) and the tax issues are more complex. Partnerships require a contract, and of course at least one other partner. Partners are, like sole proprietors, each liable for the debts of the company. A big advantage of a corporation is that you personally (as a stockholder) would not be liable for corporate debts. However, the downside, apart from the need to observe corporate formalities descibed above, is that your income is taxed twice, first at the corporation level and then a second time when it is distributed in the form of dividends to the stockholders (i.e. you). An LLC (limited liability company) is available in many states for small businesses, and this usually allows many of the tax and simplicity advantages of corporations but without all the legal formalities.

Hope this helps!


Thank you richard for going into such details, you certainly made the choice of companies available to me clearer.


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Alexandre Berger
French to English
+ ...
TOPIC STARTER
thank you Feb 5, 2006

Balasubramaniam wrote:

Many of us receive payments via paypal and moneybookers. You too should register yourself with them if you haven't already done so.

http://www.moneybooker.com
http://www.paypal.com[/quote]

Thank you i'll check money-bookers, but for paypal I was stopped at the different types of account figuring that business was the proper one for me but realising to open one I needed a company since they ask "company name" in required fields, how do you do it?

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Alexandre Berger
French to English
+ ...
TOPIC STARTER
thank you for tips Feb 5, 2006

Woodstock wrote:

Alexandre Berger wrote:
.........
How will I receive payments?

For that matter I know I have to have my own business,....


Welcome!

Since you're in the US, your state might have a website on just that topic, something like "starting your own business". I found one for Maryland, where I might go in a year or so (it's a dot-org site). You might also want to contact your nearest Better Business Bureau for information, local Chamber of Commerce or just look up the official website of the state you're in and check there, or the links for anything useful about starting your own business. Also talk to your bank, I'm sure they will be very interested in helping "grow" your business - it's good for them, too! In any event you'll have to register your business with the IRS - very important in avoiding problems later, but I don't know how that works, because I've never had my own business in the States.

This should get you started...

Good luck!


Thank you, yes IRS will probably be my first non virtual destination for the purpose of making my business legal.


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Alexandre Berger
French to English
+ ...
TOPIC STARTER
thank you Feb 5, 2006

sarahl wrote:

Hi Alexandre

Why a corporation if you're a freelancer?

If you're on your own, all you have to do is file the right return at tax time.

On the other hand, if you're planning on starting your own agency, you may want to start with an LLC, in which case you should probably consult with an accountant and an attorney.

Corporations are heavy-duty companies, with a board of directors, stock, the whole nine yards. That's the way to go if you want to start a HUGE agency.

However, since you mentioned freelance work, self-employed is probably the best option for you.

HTH

Sarah

exactly I want the least possible interaction with gov. agencys while staying legal with all aspects of my business, if i have the right to perform my job without having to create a company then this is definitly where I'm headed


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Alexandre Berger
French to English
+ ...
TOPIC STARTER
Thank you all Feb 5, 2006

You have all answered different aspects of my question and helped me get a clearer picture of the options and issues I have to deal with.

I want to thank you for your time and dedication in doing so.

I wish that I can return this favor in the futur.

Thanks again.

Alexandre Berger


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Stephen Rifkind  Identity Verified
Israel
Local time: 01:05
Member (2004)
French to English
+ ...
Another suggestion Feb 6, 2006

If you have a family member who lives in Europe or can open an account there that you have access to, it would be a could idea to open a Euro account. The banks are really vicious in converting dollars to Euros and vica versa.

Stephen Rifkind
Hebrew/French/Russian to English


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Alexandre Berger
French to English
+ ...
TOPIC STARTER
Thank you Feb 6, 2006

Thank you,

Great idea.


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Germaine A Hoston  Identity Verified
Local time: 15:05
Member (2003)
French to English
+ ...
Why you should not be simply "self-employed" May 19, 2006

Alexandre Berger wrote:

I want to start translating on my own, I have started developping my web site joined Kudoz, but I realize i'm facing another kind of issue.

How will I receive payments?

For that matter I know I have to have my own business,....

That's where I turn to you out there, is corporation what I should go for or are there better ways for freelancers, could you show me my way towards legitimately, legaly receiving my first payment for translation services?


I note that a number of people have suggested that the way to go for you in organizing your business is simply to be "self-employed" and not bother with a corporation or other business entity. This is very, very bad advice, because if you follow it, it will cost you a lot of money in taxes, make it more difficult to be taken seriously in getting the capital you might need down the line or in collecting debts, and--most importantly--expose everything you own to loss due to professional liability. In fact, in the opinion of leading business attorneys and accountants, operating that way (as a sole proprietor or a general partner) is so dangerous it ought to be outlawed! Imagine...if you were to be sued by a client (and it has happened all too often), and your liability insurance did not cover a judgment made against you, you could lose everything you own in your own personal name, including your personal residence, automobile, personal savings and investments.

It is certainly true that most freelancers, like most small business owners in general, operate this way, because state and federal regulations make it the *easiest* way to operate. But the price to pay for going this easy route is unacceptably high.

It is not terribly complicated or difficult to set up a corporation (which does *not* require a huge board of directors or anything of the sort), or a limited liability company LLC). I publish a monthly eNewsletter (ezine) to help translators to sort through these issues and determine which business entity is right for your specific circumstances. You can get a special report on using business entities when you subscribe to the free newsletter at: http://www.translationsuccess.com.

There are also extensive resources to help you sort through all this on the resource page of the website: http://www.translatorsuccess.com/resources.htm

HTH,
Germaine A. Hoston, Ph.D.
Azur Pacific Associates
http://www.translationsuccess.com


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