My 8 Step Guide to Create and Scale Your Upwork Freelance Business
So you want to join the freelance economy and create a business that funds your lifestyle?
Note, that I am not a financial advisor or accountant. These are simply the tools and strategies I’ve used. Speak to a formal accountant, lawyer, or certified financial advisor for professional advice.
Why consider freelance in the first place?
Context I created my freelance business in April 2022 and am in the midst of growing it. I was initially intrigued because a colleague of mine (who works in sales automation) went from $30 to $250 an hour in 5 months (AKA $500k a year. Nuts).
The other massive benefit — it can fund your lifestyle. New laptop, gas mileage, restaurants, hotels, flights, insurance, phone, anything that’s a “business expense.” So you get paid to live your life.
All the upside of being a business owner — acquiring dozens of skills, and the upside of an employee — getting really good at a few things, without the downsides: not tied to a single employer, and without the risk of actually starting a business.
Some skills you develop in freelance that employees (generally) otherwise wouldn’t (directly):
- Interpersonal (people) skills
- Marketing — your profile, keywords, creating demand
- Productivity, time management
- Receiving fast feedback on what works vs doesn’t.
First, Creating a Corporation — LLC
Why do we start here? Well, the main reason — tax write-offs. Also liability protection through the corporate veil (not getting personally sued).
I’m based in Florida and created a Florida LLC, so this may be different if you are in a different state (or country).
- Went to Sunbiz to create a new Florida LLC. Cost: $160 with the extra documents
- Went to IRS for Employer ID Number creation
- Filed as a single-member