3 Reasons To Hire A Lawyer When You Start Freelancing
If you have decided to jump into the freelancing world, congratulations. It's an exciting journey that essentially allows you to be your own boss. However, don't make the mistake of jumping into work without talking to a lawyer first. Here are three reasons why:
Understand How to Start:
When you talk with a lawyer, he or she is going to tell you how to properly get started. It can be overwhelming trying to decipher what work is good to take and what work isn't. You are also going to want to develop what kind of business structure you want to work with, which will help push you in the right direction. Your lawyer will help you understand what structure is best for the type of freelance work that you do.
Your lawyer is going to emphasize to you that it's important not to take on any work without signing a contract. If you work on a project without a contract, how will you truly know you are going to get paid? If you are offered a contract to sign and you don't understand it, you will want to refer to your lawyer. Your lawyer will decipher the contract and determine whether or not it's one that you should sign, request to make adjustments to, or deny altogether. You don't want to jump into work without understanding the contract terms because it can lead to major legal issues in the future.
You basically have two options here, which would be to sign up as an LLC or as a sole proprietor. As an LLC, you will have liability, which allows you to protect your assets if a legal issue arises in the future. As a sole proprietor, however, you will only be protected based on the agreement made in any and all contracts that you have signed. If you have a low-risk business, then being a sole proprietor is probably best. You may want to discuss getting business insurance with your lawyer, though. Business insurance can protect some of the assets that make up your business in the case of damages or theft.
When you know these three reasons to hire a lawyer when you start freelancing, you can see why it's best not to start your freelancing venture until you have discussed and begun to fully understand how to run your freelance business without getting mixed up in legal issues.