A person may decide to become an independent contractor for many different reasons. Some of the reasons include the ability to be your own boss, have your own schedule, and choose who you want to work with.
Also, you can choose to be paid hourly or per project. The independent contractor lifestyle will inspire you to start your own business and leave your day job. But, what are the right steps to take for you to be able to do this?
Find out how to quit your 9 to 5 job and start living your dream life as an independent contractor below.
Decide on the Type of Business You Want to Start
There are many different businesses you can start to become an independent contractor. If you’re not sure what you want to do, consider some of the ideas below:
- HVAC Contractor
- Appliance Technician
- Tile, Stone, and Flooring Installer
Starting a business with a trade skill is one of the best ways to become an independent contractor. For example, floor layers have a job growth projection of 12.3% by 2030.
Also, the profession has a starting median wage of $45,520 for a career that doesn’t require formal education.
Look for Insurance for Your Business
As an independent contractor, you are responsible for your own insurance. However, injuries on the job or property damage could result in your liability.
Contractor’s insurance can help to protect you from financial loss in these situations. It can also cover legal fees and expenses if you are sued.
The purchase of insurance is not a legal requirement, but it is a wise investment for any independent contractor. If you carry adequate coverage, you can protect yourself against the financial consequences of an accident or lawsuit.
Get the Right Self-Employed Business Structures and Licenses
After you decide on the type of business, you want to start considering how you want to structure your company. For example, do you want to be an LLC, sole proprietorship, corporation, or S corporation?
The business structure you decide on will affect your payment of taxes, paperwork you have to file, and personal liability. For example, many independent contractors choose to form their business as a Limited Liability Company(LLC).
This helps protect the business owner’s assets in case of a lawsuit or bankruptcy. It also allows more flexibility for a self-employed individual’s taxes than for someone who forms a corporation.
Once you decide on your business structure, you must obtain the appropriate licenses and permits. The best way to see what type of licenses you need for your company is to check your state’s website for requirements.
Don’t Mix Personal Money With Business: Open a Business Account
Independent contractors may wonder whether they need a business bank account. The answer is yes!
There are a few good reasons to do so. First, it will help you to keep your personal and business finances separate. This will make it easier to track expenses and prepare for tax season.
Second, a business account will give you access to helpful features, like invoicing and online bill pay. And third, it will help to build your business’s credit history. By opening a business bank account, you can take advantage of all these benefits and more.
Get the Word Out About Your Services
As an independent contractor, you may wonder if advertising your services is worth your time and money. After all, potential clients can find you through word-of-mouth or online directories.
However, there are several reasons why advertising your independent contractor services can be beneficial. First, advertising helps you reach a wider audience of potential clients.
It also allows you to control potential clients’ messages about your business. And finally, advertising can help you to stand out from the competition and attract the attention of high-quality clients. So if you’re looking to grow your independent contractor business, advertising may be worth considering.
Make Sure to Wow Your Clients With Services
As an independent contractor, one of the most important things you can do is wow your clients. Here are a few tips on ensuring your clients are always impressed with your work.
First, always be punctual and professional. This first impression will go a long way to ensure your client feels confident in your abilities.
Second, keep them informed throughout the process – they should never have to wonder what stage their project is in or when they can expect to see results. Finally, go the extra mile to deliver a high-quality product or service. If you can consistently provide great work that meets or exceeds your client’s expectations, you’ll be sure to wow them every time.
It Is Imperative to Get Coverage for Your Business
Becoming an independent contractor is a great way to earn extra income and have more control over your work schedule. However, it’s important to remember that you are responsible for your own taxes and insurance as an independent contractor.
Make sure you are familiar with the tax laws in your state and get contractor insurance to protect yourself and your business. Are you thinking of becoming an independent contractor? Let us know how we can help with getting coverage for your small business.
Featured Image by Michal Jarmoluk from Pixabay