In truth, I can understand why some people would like to test the waters before going legit.
It's one thing to cut grass, but dealing with clients, managing expenses, and learning about advertising is enough to have some people racing back to school or working under someone else, especially if things things may even become more difficult when the government starts getting involved.
The following is more catered to people who are of legal age:
There are a lot of questions that many of you may not know the answer to, which is why the thought of becoming a legit company haunts your dreams.
All of the problems you face now, can and will most likely be eliminated once you become legit, here are just a few:
- You can create your own contract that keeps you safe. Giving you more power over your clients and their shifty ways.
- People will trust you more, meaning they will be less hesitant when it comes to paying you in advance; you will often have the law on your side if the client refuses to pay you, especially if your clients did not follow your terms & conditions listed in your contract.
- You never really owe YOUR money to the government. Example:
Many people assume that the government wants a cut of your
hard earned money, which is wrong. They simply want you to charge your client(s) extra.
Your invoice should look something like this:
Subtotal (your charge):
Tax (5% for example):
Total (the amount your client owes):
When the client pays you that $105.00, you simply give the government the $5 that was never yours in the first place.
The government doesn't
want $5 of your
$100, leaving you with $95.
Hope this helped!!!