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Business matters
Five reasons to pay attention to business

Whether you are freelancing to earn a living or to supplement your primary means of support, chances are good that you did not start out thinking you wanted to own a business — but being a successful freelancer often means having to think like a business person. Here are five reasons you should think of your freelance activities as a business, and of yourself as a business owner.

1. No one else is going to take care of business matters for you. Questions like “Do I need a business license?” and “Did I make a profit last year?” won’t get answered if you don’t tend to them yourself. And, if you don’t tend to them, you may have to spend time playing catch-up later on. Wouldn’t you rather be writing, editing, producing, [fill in the blank] than filing appeals or claims?

2. People who might hire you to write, edit, photograph, film or record journalism for them will take you more seriously if you present yourself as a business. Unless you are among the lucky freelancers who have more work than they can handle, thinking — and acting — like a business owner will help you compete in an increasingly crowded field of journalists seeking freelance assignments.

3. The IRS will let you deduct more expenses against your freelance income if your activities constitute a business rather than a hobby. If your business-income claim is challenged, you have a better chance of convincing the tax authorities to allow your deductions if you can demonstrate that you take your business seriously.

4. You may incur liability from your professional journalism activities. Planning your business structure and weighing the risks of your business activities will help you limit your exposure.

5. Approaching business issues (contracts, pay rates, collections, taxes) as if they matter to you will help you earn more money and keep more of what you are paid.

In a packed freelancing session at an SPJ regional conference several years ago, many of the participants indicated they had not thought about some of these issues. Some of them weren’t declaring their freelance income on their tax returns, and many of those who declared it weren’t taking deductions for their expenses. A business bank account? A business license? Insurance? Some of these thoughts hadn’t crossed their minds.

This section of the Guide will help you think about business issues in a way that makes your work time more productive and gives you more time to devote to your professional activities. Whether you rely on your freelance income for living expenses or use it to supplement another means of support, these topics are worth your consideration.

Last updated: January 2015

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