It’s been a while since I wrote a new post on successfulfreelancetranslator.com, however, there was a good excuse for that – I decided to go to the next level and register as a self-employed entrepreneur with the right to hire employees. Registration process and all auxiliary arrangements took more time than I expected, therefore, I had no chance to write even a couple of words on the blog.
In addition, I had a crazy workload over the last few weeks (yes, official registration was one of the reasons why I got so much work). Previously I worked on a simplified taxation basis that implied certain limitations, for instance, I had no right to open settlement account, which was the main obstacle for cooperation with direct clients (companies in particular) as many of them prefer bank transfer.
I have a lot of friends who work on a freelance basis both in the translation market and in other industries, for instance, web design, programming, SMM. However, many of them are not registered at all or choose simplified taxation regimes.
In November 2015, two years after I shifted back to freelancing, I decided to treat my freelance business as serious as I could. Since that time I learned much about marketing, business development, promotion, and cooperation, contacting and establishing connections with new clients.
Now that I have an official state registration certificate, settlement account, and business stamp it is much easier to cooperate with direct clients.
Let’s see why it is important to register your freelance translation business
If you’re working as a freelance translator, your reputation is one of the most important things that serves as the evidence of your professionalism. Official registration can add credibility to your business profile and help to stand out of the pack of other freelancers who have no registration. Put yourself in place of your clients – would you prefer to work with an unregistered freelancer, or with a person who has official state registration, certification and other attributes of legal entrepreneurial activities?
After official registration, I can add more official details into my proposals, issue invoices, certify translation with a business stamp, receive money on my settlement account and much more. Previously translation agencies formed a major part of my client’s database. Official registration helped me to fill in the database with direct clients as many of them prefer to work with registered entrepreneurs rather than with freelancers out of nowhere. During the first three days after registration, I contacted several local legal companies who, to my best knowledge, were working with international projects. I was very pleased to know that they are ready to cooperate with self-employed translators and I got my first order from a local company within the first week! Now I have 2 new contracts with local legal companies (out of ~30 prospects) and receive more or less regular translation assignments from them.
Social Insurance and Pension Contributions
Another good reason to get official registration resides in better social security. According to local legislation, I pay 10% from average salary rate to social welfare and pension funds. While you work without registration it is hard to control yourself and save money for retirement. Moreover, when you’re young you never think 30-40 years ahead. The necessity to make pension and social contributions will definitely help you to be more confident in your future.
Better Legal Protection of Your Interests
With the official registration, you can enter into contractual relations that are governed by the laws of the certain jurisdiction. Therefore, it would be much easier to advocate your interests in case of any claims.
No Problems With Tax Authorities
There is a popular quotation in the Russian language – pay the tax and sleep well (maybe there are some similar quotes in English). When you know that you have paid everything that you had to pay in a profit of state, you can really sleep well and not to worry about receiving money to your personal account.
Of course, there are many other benefits of official registration that can be topical for the tax regime at your location, but I think that these five reasons reflect the most evident benefits of state registration of your freelance translation business.
Feel free to tell me about your situation and what do you think about this question in a comment section below!