I was scrolling through Tiktok when I came across a guy from my country was talking about why you need to register your business in order to work rather than be a freelancer. The points he made were very valid taking into consideration that I’ve been a freelancer for years.
When you register a business you now qualify to work as a company and that makes clients take you more seriously even if you are the only worker in your former gig-hunting turned small-business.
Having been freelancer myself for many years and experiencing many frustrations such as constantly looking for clients, keeping up with clients, late payments and non-payments it seemed like I was stuck in the cycle of hustling without growth. This was the case regardless of the number of online freedom with writing gurus that told me that they were making thousands of dollars working and pitching online and that they had done it in record time. Which was very discouraging because they said that they would give you little tips that would help you get started for free. And one would try those little tips for hours and days and weeks and they would not give the dividends that were promised. So logically speaking if the advice that they gave for free that they promised would wield some results resulted in nothing that means that the advice that you actually paid for couldn’t be much better. Fortunately I didn’t make the mistake of paying for a course that gave me false promises (I’m not being a hater but seasoned professionals will often tell you things realistically and won’t build castles in the air for you, they’ll tell not to raise your hopes too high too fast. By seasoned professionals I mean career consultants and wealth managers and investment consultants. Anything that sounds too good to be true, often is)
The frustrations of being in a cycle of working and working was buying into the hustle culture. Because there were times when it seemed that everything was running smoothly then the dry seasons would come and it seems that the clients that you usually rely on don’t need you all the time so you are always on the grind and hustle no matter how big your portfolio gets. The biggest it often gets is that during high season you might need to hire an assistant or two. Ironically the gurus that tell you that they have clients that pay thousands of dollars often don’t give you links to their works that paid them thousands of dollars. Not suspicious at all.
The lack of real career progression isn’t apparent in your twenties since cost of living can be relatively low. In fact if one is young enough you can easily become the envy of your friends with an income that seems to outshine them. But as a career freelancing has no progression in most cases. So eventually you end up envying your friends who now have salaries that make you bow your head in shame especially the it comes down to pension plans, medical insurance and savings.
Without proper structure it’s easy to lose direction and when there’s no clear next step its easy to stay on the same step. Besides that the biggest issue that many freelancers face is receiving payments. Talking to many freelancers we seem to never get respite from this. From clients that want to pay three months after receiving the finished product (I’m looking at the big publications right now) to clients that try to evade payment by lying that they don’t like the finished product yet you see them using the finished product that they didn’t like apparently…and the list and disrespect goes on.
When one operates as a cooperation they are protected by corporate law which means that if clients try to do that to you they can be sued, arrested or the debt can be passed on to debt collectors.
There’s a lot more to learn about the advantages of registering a business over freelancing, but I think you can get even more relevant info from the cattle’s mouth himself. His Tiktok is @dominatelife.