Ask FreelanceSwitch: Freelancing as a Student

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In this issue of Ask FreelanceSwitch, we look at getting ahead as a student and transitioning from student to freelancer. Ask FreelanceSwitch is a regular column here that allows us to help beginners get a grip on freelancing. If you have a question about freelancing that you want answered, send an email to askfreelanceswitch@gmail.com.

Question 1

I am currently a college student looking forward to be a freelancer, what can I do now that will help me in the future? I do web and graphic design jobs for family and friends, is there anything else that could help me greatly?

I actually started my freelancing career while still a student. I started out by using the connections I already had — professors, on-campus departments, the student newspaper — to land little gigs. We’re not talking about bucketloads of money here, but we are talking about projects that let me get a handle on how to work with a client and get some pieces for my portfolio. I would absolutely recommend looking for some small freelancing gigs even while you’re still in school.

It’s also worthwhile to use your time to polish your portfolio. You’ve got access to professors who almost certainly know good work when they see it — ask them to review your portfolio and show you where you might improve on it.

Lastly, start building up all the connections you can. There are college chapters of groups like PRSA (Public Relations Society of America) that you can join and use to get to know people out in the community. Even if you’re not planning to freelance as a PR professional (or the speciality of whichever groups you join), you can make great connections with people who will need freelancers to complete their projects in the future.

Question 2

I’m going to be graduating next month in web design and I wanted to do some freelance work since no one around here does web design. I just wanted to know what do I need to do to get started as a freelance web designer?? I’m from Ontario Canada by the way.

Do I need to make a contract? Is this a business? Do I need to get some kind of business permit? Can I work from home? or do I need to get myself an office?

Since I actually freelance out of the U.S, I brought in Canadian freelancer Mike Vardy to help us with the intricacies of freelancing in his home country.

When it comes to business licenses and permits, here’s what Mike had to say: “I don’t have one. Some people like to have it for tax purposes, but unless you are running a team of freelancers, I don’t see the benefit. You just have to keep track of your income accordingly, and ideally have a separate bank account for that aspect of your life. Beyond that, it’s not a necessity. I don’t think I’ll ever need one — unless I start charging taxes or expand into a team. When that happens, you either have to have one (charging tax) or will want one (running a company as opposed to being a sole proprietor).”

No matter where you are based, having a contract that you use with all of your clients is a good idea. In just about every country, it’s easier to resolve a dispute if you have the terms of the agreement in writing. There can be differences in the law even between individual states or cities, though, so finding a legal advisor locally makes sense.

Taxes can be on the complicated side when you’re freelancing, no matter where you are. Mike has a good handle on the Canadian system, though, and following his good example is easy enough. He says, “If you’re working for someone in the US, you’ll need to get a W-8BEN form so that income taxes aren’t withheld — and so that you don’t get taxed twice. If you’re selling your work (i.e. book via CreateSpace, for example) or are working under a contract to a company in the US, you’ll either have to get one filled out (as the company you’re working for will ask you to) or will want to.

As for paying Canadian taxes, it’s up to you to set aside a reasonable amount of your income so that when the taxman cometh, you aren’t caught with your pants down. I generally set aside 30% of my gross earnings so that I don’t have to worry about that. My wife is great with money, so I generally get her to invest what’s left over (if any) in a tax-free savings account. As with anywhere in the world, if you’re a freelancer you have to be wise with your earnings.”

Working at home is generally fine — although you do want to check your community’s zoning laws. Just browsing through Ontario’s zoning laws makes it seem like there are some communities where there may be limits on the specific types of work you can do from home.