Individual or Company?

Discussion in 'Growing and Managing a Business' started by chinaoilpainting, Feb 2, 2010.

  1. chinaoilpainting

    chinaoilpainting
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    I'm wanting to start up a small web design/development business, and there has been one question bugging me.

    I'm not sure whether to operate from behind a company (Oven Roast designs), or to operate as a freelance individual and just operate as me (Geoffrey Garbers, etc.)

    Any help at all is really appreciated.
     
  2. Fergal

    Fergal
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    Where will your business be based - what country or state?

    In Ireland many businesses will start out as a sole trader / freelancer and then form a limited company as the business grows and expands. This may be a suitable approach for you, or perhaps the legal situation is different in your country. Regardless of which route you go make sure that you get insurance for your business, you never know when something can go wrong and it is important to have insurance to protect you.

    In addition to the legal situation you should consider the impact that your business structure will have on the perception of your potential clients. If you intend to offer your services to other businesses they may be more comfortable with giving their business to a company, rather than an individual freelancer.

    Please post back with your thoughts and good luck with it.
     
  3. cosmos

    cosmos
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    Start as a Freelancer ,,,,,>>>> company
     
  4. seanstevens

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    I guess most web people start off as sole traders and move onto a limited (LLC) or the like business once demand and tax rules dictate it. Even if starting off as a sole trader there is nothing to stop you using a trade name "Oven Roast Designs" as long as the name you want to use has not be registered elsewhere by another company in your country.
     
  5. DEADMAN

    DEADMAN
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    It's good that you've a company to start with. Most designers don't come with pre-company and you're one lucky to have it.

    However, there are many freelancers and getting new projects everyday. I believe there is good chance to work as a freelancer.
     
  6. chrisdina

    chrisdina
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    If you work in a company, you can have
    1. Health insurance.
    2. Retirement savings.
    3. IT costs. When you go to work for yourself, there are no IT people to drop by your office and fix your system.
    4. Legal fees and liability insurance. At the very least, this is a hassle. But it can also be expensive. Companies foot this bill for us when we are employees.

    But for me, freelancing Is the Best Job Ever....But, it’s also the hardest and most demanding job ever. It can be frustrating because you have no one else to share the business duties with. People, including clients, misunderstand what you do and may not think you’re a real business who charges real rates for real work. The important thing is to make sure you really like working independently and you have the drive to do this all by yourself. The freedom and satisfaction from being able to control your own career is reward in itself.
     
  7. chinaoilpainting

    chinaoilpainting
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    Thanks for all.
     
  8. Ecogadgets

    Ecogadgets
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    Starting as freelancer is good idea because this will not require investment, after this as your workload increases and your profit increases think about starting company.
     
  9. kittelsoncarpo

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    Maybe start first on a particular company so you will have benefits provided by the company. At the same time you could have the knowledge on how to operate a business like that.
     
  10. Business Forms

    Business Forms
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    hello..my friend.... if you have enough capital....and you study a market condition then you can start a company ... but i suggest you to go with a freelance ... you can get a good output without investing more mony... if get more project.... and you successful done all...and getting more work... then go for compeny ... go with step by step :) :) :)
     
  11. haiwin

    haiwin
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    I think individual or company depends on business scale
     
  12. anatomymodel

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    If you have truly developed a better mousetrap or discovered a better way of doing something, starting your own business may be the simplest and most direct way to get your idea into the market.
     
  13. Judi

    Judi
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    Depending where you live....

    In the U.S. you can start your own LLC for less than $50!

    It gives you the ability to write off almost all your expenses. It enables you to enjoy the professional image that attracts customers, and it gives you multiple tax advantages.

    With it you can be a sole proprietor - but look like you know what you're doing.

    I always advise my clients to get a legal entity. It protects you and your assets from any liabilities, gives you great tax benefits, and let's people know you are serious about business.

    Good luck!

    Judi
     
  14. Rogbog

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    I agree, usually the step-by-step approach is the best. However, sometimes striking while the iron is hot is good too~
     

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