Dumb question

If you are a Freelancer, are you considered a sole-proprietor?
I believe a SP in CA does not have to file papers to the state if using
your own name. You just need a business license.

 

If you've registered a business, then you're a sole-proprietor

 

This link may be of help to you...

http://www.associatedcontent.com/article/140427/tax_deductions_for_freelance_writers.html

 

In my country theres a solution / like called Professional ...

 

Thanks for the replies. Ok, according to that article it is saying freelancer is a sole-proprietor. Does every freelancer register and get a license? I don't think so. Isn't a freelancer more like a temp and the contacts are drawn up from the client? This is why the terminology can be mixed....

 

independent contractor

 

The answer may depend on your local law.

The county in which I live, does not require any formal steps to be considered a sole proprietor.

They also do not require that we charge tax on consultation services.

 

I agree with this. That is the way I handle my freelance work. I receive a form W-9 from companies I do freelance work for, and in turn I receive a 1099 at the end of the year, so I can pay all my lovely taxes on the money I've earned.

 

>The county in which I live, does not require any formal steps to be >considered a sole proprietor.

I don't believe in my county either. I could put my name on a card
and if people want to hire me, then i would be 'freelancing'.
If people give me a straight money deal, then i would be responsible
to pay the taxes like a SP. If an independent contractor, then they
would deduct the taxes.....

So, then...a freelancer is a sole proprietor who is registered or not registered (in the county if required) who does his/her own taxes.

An independent contractor is one who is like a temp where the client pays and deducts tax and you don't have to worry about that....
I had thought independent contractor was a freelancer but maybe that is where my 'terminology' is confused.

Does that sound right? If so, then its is a matter of who is deducting your taxes.

 

I started paying quarterly last year. It's less of a kick in the gut at the end of the year and you avoid the $80 penalty.