Many of the talented logo designers here at Logomyway might find that they want to branch out into freelance designing on a wider scale. Rather than having the clients come to them through the conduit of the Logomyway community, they may want to go out there into the world and try and pitch for work.
Taxes and branding can become difficult for designers, however, unless they get registered officially as a business. It is an important step to take towards legitimizing your work, and ensures that any business dealings are above board.
Moreover, potential clients are severely impressed by the fact that a designer has committed so much to their work that they register their business.
It is an easy way to clear up many tax problems which freelancers are privy to. Additionally, it means that others cannot trade under the same name, carving out a unique niche for people.
Registering a business name
Personal branding is one of the most important decisions a person can make when setting up in business. Think about the sorts of products which people use in everyday life. Were Photoshop, for example, called something else, it may not be as popular as it is today.
Not only does this serve a professional purpose, but it also helps in legal filings. If a person is a sole trader, in the US they will have their legal name become their business name.
Get a Federal Tax ID…
No-one likes to fall foul of the IRS. People therefore need to ensure that they have a federal tax ID, and are registered with the internal revenue service to make sure that come the end of the tax year, they are not being hounded by tax collectors. The IRS phone number is 1-800-829-4933.
…But Don’t Forget the state either!
If you’re resident in the US, you not only have to register with the IRS but with your state revenue agency. It’s worth checking out whether the products you offer – logo design and branding – are culpable for sales tax in your state.
Every state has different ways of working, so don’t presume that because fellow Logomyway community members don’t have to pay sales tax, you don’t!
Get licensed and permitted
Licenses and permits are also an important part of setting up professionally and legally. Small business permits are hugely important. Without them, people can end up trading illegally.
Then spread the word!
You’ve jumped through all the hoops and are now legally set up as a traded business. However, unlike here at Logomyway, the customers and clients will not come to you! You have to get your name out there as a trading business and a respected name in the industry to get clients noticing you!
