What is an independent contractor?
An independent contractor is a business, corporation, or person who offers products or services. Carpenters, childcare workers, and grounds maintenance professionals are just a few examples.
Studies show 1 out of 10 Americans are working as an independent contractor. If you’re thinking about getting into business for yourself then you’re in the right place! In this article, we’ll review the top benefits contractors enjoy, as well as common pitfalls you should avoid.
Read on to find out the truth about what it’s like being an independent contractor.
Top Benefits of Being an Independent Contractor
First, let’s look at the benefits of working as an independent contractor. One of the biggest benefits you’ll enjoy is flexibility. By regulating your schedule, you’ll have full control over what hours you work.
Next, you’ll also get the opportunity to become your boss. Instead of a corporation deciding your career path for you, you’ll be the one dictating how you want to grow. If you don’t want to leave your current job, look into becoming a part-time independent contractor.
Finally, being self-employed can help you lead an exciting life, filled with variety. Gone are the days of clocking in at the same old office. Instead, you’ll be tackling new jobs, meeting new clients, and visiting new places!
Self Employed Contractor Mistakes
Life as an independent contractor can easily go from good to awful if you don’t know the top mistakes to avoid. For instance, failing to learn how to incorporate yourself can cause all sorts of legal complications down the road.
Another common mistake self-employed contractors make is forgetting to save up for tax time. In addition to setting funds aside, you also have to learn how to take advantage of every business deduction you qualify for.
Finally, are you a contractor who’s going use a team of employees? Make sure you don’t fall into the trap of forgetting to set aside funds for federal payroll taxes.
Tips for Finding Success
Do you want to make a simple living working for yourself? Or are you looking to build a lucrative career? If you want to rise to the top, follow these steps:
- Plan your income
- Choose a legal structure
- Seek out work everywhere
- Embrace cloud technology
Thoroughly research the industry you’re entering to find out how much you can realistically make. After all, if you don’t know what your projected income is, how will you be able to plan for business expenses? Finally, use cloud technology to help organize projects online.
Enjoy Working as an Independent Contractor
There you have it! The ins and outs of what it’s really like working as an independent contractor. What’s 1 new thing you were able to learn from reading our article?
Were you surprised to find out that a lot of contractors forget to prepare for tax season? Or was it inspiring to remember that working for yourself means having more variety in your life?
Remember to thoroughly research your industry before embarking on your contracting journey. For more tips like the ones in this article, explore the rest of our site.