15 guides
Freelance money guides
Plain-English money basics for freelancers and the self-employed. Tax rules change every year; check IRS.gov or a tax professional. General education, not tax advice.
Set up right
Separate accounts, tracking, structure and tax forms.
- Open a separate account for your freelance money
The single best admin habit for the self-employed.
- Track income and expenses from day one
Ten minutes a week saves days at tax time.
- Sole proprietor or LLC?
Many freelancers start as sole proprietors. An LLC adds some separation.
- W-9s, 1099s and your taxpayer number
Consider a free EIN so you're not sharing your SSN with every client.
Price and get paid
Rates, contracts, invoices and raising prices.
- How to set your freelance rate
Start from what you need to earn, not what others charge.
- A simple contract before you start
Scope, price, deadlines and payment terms, in writing.
- Invoices that get paid, and late payments
Clear invoices, short terms and polite follow-ups.
- Raising your rates
Give notice, explain briefly, and apply it to new work.
Taxes
Self-employment tax, quarterly payments, deductions and records.
- Self-employment tax, explained
Social Security and Medicare, paid by you as both employee and employer.
- Quarterly estimated taxes
Pay as you go, four times a year, to avoid penalties.
- Common freelance deductions
Ordinary and necessary business costs, with records.
- Records to keep, and for how long
Generally at least three years after filing.
Protect yourself
Retirement, health insurance and slow months.
- Retirement savings when you're self-employed
SEP IRA, solo 401(k) or a regular IRA.
- Health insurance when you work for yourself
Marketplace plans, savings based on income, and a deduction.
- A buffer for slow months
Pay yourself a steady amount, and keep the rest in reserve.