Do you register a company as a full-time freelancer?

@kaka135 (14130)
Malaysia
September 19, 2010 9:38am CST
I'm planning to be a full time freelancer soon, and some friends suggested me to register a company so that I can use the company name for getting projects, as it's more business presentable. Also, the tax is calculated differently for personal and business. Of course, registering a company has more things to take care, I may need to get an accountant for those financial accounts. What do you think about this? Do you think registering a company is better?
1 person likes this
7 responses
@bounce58 (17524)
• Canada
22 Sep 10
At where I'm at, it is better to register as a company to avail of all the tax exemptions offered to small businesses. Me, I've been trying to come up with a business so I could also avail of these exemptions. Unfortunately, I couldn't come up with a business that I could actually do.
@kaka135 (14130)
• Malaysia
16 Oct 10
Hi bounce, thanks for your response. Besides being more professional, I'm actually thinking of those tax exemptions. No matter how, at least you gained some experience from setting up the business, right? That's what my husband told me, just go for it, and I'll definitely learn something.
@dorannmwin (36698)
• United States
21 Sep 10
It really depends on how much you are planning on doing. Check out the laws in your area to find out whether or not you need to have your own small business to do the work. I do know that one of the benefits of having your own company registered is that you are able to set up a SEP (self-employed pension plan) where you can sock away a lot of the money that you earn which will help you a whole lot when it comes to tax aspects.
1 person likes this
@kaka135 (14130)
• Malaysia
16 Oct 10
Hi there, thanks for your response. I've decided to really go for it, as it will eventually become my career, besides a full time mother and housewife.
@Shellyann36 (11258)
• United States
20 Sep 10
I would say YES. You would be looked upon as more professional and it might amp your business up in the long run. Registration of a company is not that hard. You just have to apply for your state and federal ID's or EIN #'s. Now, once the tax departments start sending in your tax credit vouchers that you are suppose to fill out and send back into them it can start to seem confusing. A good accountant can get you on the right track and help explain exactly what you need to do. Also, doing it this way will probably get you more tax breaks. I will say that it is much easier for me to just use my ss# and I file as a small business every year myself. The tax filing software that is available these days are wonderful. It is really up to you and how professionally you want or need to represent yourself.
@kaka135 (14130)
• Malaysia
20 Sep 10
Hi there, thanks for your response. I do agree with you. I'll find out more information about this in my home country. ^_^
@mikeowl (200)
• Malaysia
19 Sep 10
I am not quite sure about this. But I think it's better to have a registration so that they can contact u back easier and more convenience to get jobs. But on the other hand, you may need to pay for tax. But it all depends on you. Whether the convenience or the money that affects you.
1 person likes this
@kaka135 (14130)
• Malaysia
20 Sep 10
HI there, thanks for your response. Yeah, I do agree that with a company name, I might get projects easier.
@puccagirl (7316)
• Israel
19 Sep 10
I have been thinking about the exact the same thing! So this is really a great discussion. I would think that it is indeed better to have a company, but I am not an expert on this or anything. It might be hard work in the beginning but it really has a lot of benefits too.
1 person likes this
@kaka135 (14130)
• Malaysia
20 Sep 10
Hi there, thanks for your response. Yeah, I suppose there are a lot of things to learn at the beginning.
@1anurag1 (3580)
• India
19 Sep 10
Yes company has different level of responsibilities and expenses for their office. But if you have bigger projects to handle you could go to start a company and employ some people to handle. But if not then it is enough to do on your own and pay your tax as individual. I am also working as freelancer but I don’t get bigger project as customer prefer to give work to company rather then individual.
1 person likes this
@kaka135 (14130)
• Malaysia
20 Sep 10
Hi there, thanks for your response. Are you a full time freelancer? Are you also software or web developer? As this stage, I am still not sure how it'll go, as I haven't really get any bug projects yet.
@Metatronik (5923)
• Pasay, Philippines
19 Sep 10
My answer there is a big big big YES! that you really have to register your company to make it legal. It also reflects that your company is reliable that people can respect it. You may need an accountant but you must have the idea on how your business flows especially the cash flow of course.
1 person likes this
@kaka135 (14130)
• Malaysia
20 Sep 10
Hi there, thanks for your response. I do agree with you that it's more business presentable if I have a company name when I seek for projects. I'll need to study more on business perspective too.