More legal assistants are stepping out, escaping the 9 a.m. to 5 p.m. grind and opening up independent contract businesses. Opportunities for such endeavors abound from media relations to software engineers to contract paralegals. Before one can become a sole proprietor, a solid business foundation must be laid. The following 10 tricks of the trade make for good bricks and mortar for any freelance business. Another useful site offers advice to freelancers in the communications profession.
Similar rules apply in Canada.
The site addresses the need to either increase withholdings from other full-time employment to cover an anticipated tax bill from freelancing, or, if the taxpayer's income is derived solely from freelancing, to file quarterly estimates and pay the tax in advance. According to Matthews and Sue Katherman, a freelance probate paralegal from Columbus, Ohio, and owner of Susan L. Katherman Probate Paralegal, it can take anywhere from three to six months before enough work is completed to receive payment. It's necessary to start with enough savings to support yourself and to run the business for several months. There can also be down periods after the business is up and running, so it's important to have money saved to cover the months when no income is generated. The amount of money that's necessary to save varies with the expenses of the individual business, but a minimum of three months worth of expenses is typically recommended.