Many freelancers do not consult with an attorney before starting a business. This is often because they are unsure of which type of attorney to consult and how much the consultation will cost.
It is also possible that many freelancers feel overwhelmed by the prospect of consulting with multiple lawyers, or that they simply do not understand the importance of such a consultation in the first place.
In this blog post, we will discuss three reasons why you should consult with an attorney before beginning your freelance career.
An attorney can help you figure out whether your business should be an LLC or a sole proprietorship.
| Takeaways |
|---|
| Consulting an attorney before pursuing freelancing can provide valuable legal guidance and help you understand your rights and obligations. |
| An attorney can assist in contract review and negotiation, ensuring that your freelance agreements are fair and protect your interests. |
| Understanding the legal implications of freelancing can help you navigate potential issues such as intellectual property rights, liability, and tax obligations. |
| An attorney can advise on the appropriate business structure for your freelance practice, such as forming an LLC or sole proprietorship, and guide you through the necessary legal processes. |
| Seeking legal advice early on can help you avoid costly mistakes and legal disputes, providing peace of mind as you embark on your freelancing career. |
What Is An LLC?
The acronym stands for “Limited Liability Company,” and it’s a business structure that provides the owner(s) with protection from personal liability in case of any lawsuits or legal claims.
In other words, it protects your personal assets from creditors who may try to sue you (via your company).
The main benefit of using an LLC is that your business becomes a separate entity from yourself, which means that if any lawsuit were to arise against you or your company, people cannot claim against those assets.
In addition to this protection, there are other benefits as well. For example:
You will be able to write off most expenses related to running the business on your taxes each year. This includes things like office supplies and utilities associated with operating the firm (but not transportation costs).
If someone files suit against one member of an LLC but not another member in good standing, then only those specific individuals will be responsible for payment;
All others within their companies would avoid any consequences regarding these matters (this applies even if there are multiple members within one company).
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A Lawyer Can Help You To Draft Contracts
A lawyer can help you to draft contracts that protect your business and provide a clear understanding of the terms of an agreement.
A lawyer will consider various legal issues that may affect the client’s business in later years.
For example, if you are working for someone else in an agency or company, it is important to understand what benefits are available to you should you leave or be fired from that organization.
You may want to consult a lawyer who specializes in your particular field (e.g., intellectual property law, employment law) because they will be familiar with the relevant laws and regulations concerning freelancers within their area.
A Lawyer Can Help You Draft Contracts And Will Consider Various Legal Issues That May Affect The Client’s Business In Later Years
As a freelancer, you will be working with clients on an ongoing basis. You may be drafting contracts on behalf of your client and communicating with them to ensure that the terms are clear and understood.
A lawyer can help you draft these contracts so that they are legally binding, protect both parties involved in the agreement and address any potential issues that could arise over time.
A contract is a written or oral agreement between two or more parties. It is typically used as a legally binding document that outlines the responsibilities of each party involved in an agreement (or transaction).
In addition to outlining what each party has agreed to do for one another (or vice versa), contracts typically include:
- Terms regarding payment methods/currency
- Timeframes within which work must be completed or services rendered; also known as deadlines or milestones
- What happens if one party fails to meet their obligations
You May Want To Consult A Lawyer Who Specializes In Your Particular Field
Consult an attorney who specializes in your specific field. If you are a freelance writer, for example, it would be wise to consult with a copyright lawyer.
This will help ensure that you are familiar with all applicable laws and can protect yourself from any legal ramifications that might arise from your work.
Likewise, if you are a freelance photographer or graphic designer and need legal assistance regarding contracts or licensing rights, it is best to seek out an expert who understands how these types of agreements work in the industry.
Understanding the legal aspects of freelancing is crucial to protect your rights and ensure a smooth working experience. Learn everything you need to know about being a contract worker in the US in our comprehensive article on Is Freelancing Legal? and stay informed about your rights and obligations.
If You Have Time, You May Want To Consult A Lawyer Who Specializes In Business Ownership
If you have time, you may want to consult a lawyer who specializes in business ownership. A lawyer who specializes in this field will be able to help you with questions that are specific to freelancing.
For example, they can offer advice on things like whether or not your services are being sold as an independent contractor or part of your skillset, and what type of contracts you should use for work assignments, and payments (if any).
And if any legal issues arise when dealing with clients outside of their home state, how much insurance coverage is needed per employee, and more.
Another advantage of consulting an attorney is that they can offer insight into other things such as tax laws related specifically to freelance work; whether or not the IRS considers self-employment income differently than salaried employment; etc.,
While still addressing general business concerns such as legal forms needed during different stages of starting up, running, and closing down one’s firm;
How many employees/contractors/partnerships make sense financially speaking before incorporating as an LLC instead; potential tax deductions available under certain circumstances etc.,
If you’re new to freelancing, understanding the fundamentals is essential. Our guide on Freelancing 101: What Are Proposals? provides an overview of the proposal process, offering valuable insights and tips to help you navigate this crucial aspect of freelancing.
The Lawyer May Be Able To Provide A List Of Clients Who Had Similar Needs To Yours
When it comes to choosing a lawyer, you want someone who can help you with a problem.
However, if you’re considering going into business for yourself and getting out of the corporate world, your lawyer may be able to provide a list of clients who had similar needs to yours.
The benefit is obvious: If he or she has worked with other freelancers before, there’s a good chance that he or she will know what questions to ask and how best to handle issues that come up when starting your own business.
One of the most common concerns when starting freelancing is whether it can provide a stable income to cover expenses. Explore the potential of freelancing to pay your bills by reading our insightful article, Can Freelancing Pay My Bills?, and discover practical tips to manage your finances as a freelancer.
An Attorney Can Also Give Insight On How Much To Charge For Your Services
An attorney can also give insight on how much to charge for your services. It is important to have an idea of what you should be charging, but you don’t want to charge too little or too much.
You will need a reasonable rate that allows you to make a profit and still attract clients. Consider:
How Much Do Other Freelancers In Your Field/Industry Charge? Look At Their Prices Online Or Through Word-Of-Mouth If Possible
What’s the market rate for the type of work you’ll be doing? Look at sites like Upwork (formerly Odesk) and Freelancer.com for averages of similar projects and their corresponding payouts.
How does this compare with what you’re currently earning from full-time employment?
Find out exactly how much money you were making in your previous position, and figure out how many hours per week it took to earn that amount.
This is called “billings per hour.” Then multiply this number by however many hours per week you’d average freelancing, as well as any additional expenses such as transportation costs associated with getting back and forth between jobs (if applicable).
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Conclusion
If you’re thinking about going into business, your first thought might be that you need to hire an attorney. But do you need one?
A lawyer can advise on how much to charge for your services, but not all lawyers will agree with that.
It’s important to find out how much experience the lawyer has with clients who have similar needs before making any decisions about hiring them or not.
Further Reading
Here are some additional resources that you may find helpful to explore further:
Freelance Attorney: Is It Right for You?: Discover insights and considerations for becoming a freelance attorney, including the benefits and challenges of this career path.
When to Hire a Lawyer: Learn about the situations in which hiring a lawyer is essential and gain a better understanding of the legal processes involved.
How to Be a Freelance Lawyer: Tips and Considerations: Explore practical tips and important considerations for those interested in pursuing a freelance career in law.
Frequently Asked Questions
Should I Consult An Attorney Before Pursuing Freelancing?
Yes!
Freelancing is a great way to make extra money on the side and expand your skillset, but it comes with risks.
Freelancers don’t have the same protections that traditional employees do, so you could be vulnerable to exploitation by your clients and clients’ companies as well as government agencies.
You also may not know exactly how much you should be charging for your services or how to properly negotiate a contract.
If you’re looking at freelancing as a full-time job or something that will grow into one, consulting an attorney before getting started is essential.
How Do I Know If My Work Is Being Done Legally?
If you’re working for a company, you have the right to ask for an employment contract which includes things like salary and benefits details.
It’s also important that you get paid on time and receive proper tax documentation from your employer.
If you’re working on your own, there are ways to make sure your work is being done legally including setting up an LLC.
Or corporation as well as tracking all of your expenses related to business like office supplies or travel costs incurred while doing freelance work on behalf of clients outside their office environment.
Rather than just freelancing directly with clients like lawyers or doctors might do it instead (that would be considered self-employment).
What Is Freelancing?
Freelancing is the act of working for yourself and taking on jobs that you choose to do. You can do this with different skills, such as writing or editing.
Why Should I Freelance?
Freelancing is a great way to make money while also maintaining your schedule. You’re able to take on projects that interest you and are in control of how much work you take on.
How Do I Know If I Qualify To Become A Freelancer?
You need to be able to complete tasks, meet deadlines and communicate effectively with others. Most importantly, you must be passionate about what you do.
What Are The Long-Term Benefits Of Becoming A Freelancer?
The long-term benefits of being a freelancer include more flexibility in your daily schedule, increased income potential, and the ability to work from home or anywhere else that you choose.
Is There An Age Requirement For Becoming A Freelancer?
There is no age requirement for becoming a freelancer but some companies may prefer candidates who have at least some experience in the industry they are applying for.
Costantine Edward is a digital marketing expert, freelance writer, and entrepreneur who helps people attain financial freedom. I’ve been working in marketing since I was 18 years old and have managed to build a successful career doing what I love.