14

From poking around the IRS website (http://www.irs.gov) it appears as if you will not owe income tax in the United States. I am not a lawyer or a tax professional, so I can't definitively answer this for you. Most of the information is about nonresident aliens working in the US or having a US spouse. However, you may find something applicable in this ...


13

Unless UK tax law has some strange twist, your own labor always zeros itself out. Imagine that you actually paid yourself, and you could claim that expense as the cost of doing business. However, you would also now have new income (from your new client - yourself). The income amount is equal to the expense amount; the net is zero.


10

For what it's worth, I thought I'd give some follow-up to this. I was finally able to get in touch with a US-based international accountant, and she let me know that in my particular situation I was not liable to taxation in the United States. There can be some edge cases, so of course if in doubt, you should always try and seek professional assistance, but ...


5

In Germany, freelancers (Freiberufler) enjoy many freedoms. I am not required to pay for social security, I can freely chose between public and private health insurance, and it is not mandatory to use the services of a bookkeeper. In fact, the only bookkeeping that I need to do is for the department of finance: I keep track of income and expenses, I charge ...


5

Though having some accounting know how when starting to freelance, this is not really needed. In the same way that you don't need to know about business law to start freelancing, but it helps. Most freelancers manage by hiring professionals in these fields - an accountant and an lawyer, respectively. Yes, there is always a risk that they will take ...


4

It seems to me that this depends largely on the type of freelance business you are in. In my case, I build custom software. I don't have any "inventory", and I charge on a fixed fee basis (per deliverable). So in my case, accounting is very, very basic. On the other hand, my son produces a weekly internet program (he reviews bad comic books in an ...


4

I don't think I'm allowed to charge myself my hourly rate as an expense No! Well, not necessarily... if you run your business as a company, then you could bill the company for your time, but you would have to account for that personally; if you are (as tagged) self-employed then it is more clear - the payment would count as Drawings (ie post tax) would ...


3

Not sure if I understood you correctly, but I've heard good things about the the Estonian e-residency in regards to e-businesses and banks.


3

I keep them on the cloud services like Dropbox. I have folders created for each client, then subfolder for the project, then more subfolders like code, certificates, misc. etc. For password I strongly recommend using LastPass. I pay them pro account for $1 per month (aren't they a ripoff :)). For many years I kept passwords inside Firefox or Chrome and did ...


3

(NOTE: Before moving forward, check your level of service with FreshBooks. Some features may not be available in the free tier.) Staying Within FreshBooks I've used FreshBooks since 2009 and have found at least a couple of ways to develop a fairly streamlined proposal system that stays within FreshBooks. If your proposal is simple enough, then see if the '...


2

Perhaps this is just semantics, but it sounds to me like you're invoicing for a retainer, and then you're invoicing for your service. For me in this context, client receivable tracking is more important than crowding it into one invoice; I'd just have two invoices, track payments to each, and issue a credit on the second invoice. If I were to do it the way ...


2

After reading the other answers here and pondering them, I decided to throw my own answer in anyway and flesh it out a little. I am posting this after having accepted another answer. How much knowledge is (minimally) necessary? I don't think my initial instincts are that far off from what others are saying, though perhaps the emphasis is from another ...


2

Usually you don't need more about accountancy when going to accountant then about medicine when going to the doctor. You can't be good at everything and you have to choose. I have done accountant things myself, but most of my colleagues had only very basic knowledge about accountancy (that is, they've known the telephone number of their accountant). If you ...


2

I don't know that program, but what I do on my invoices: Create a new invoice to the customer. As a memo, mention how much was owed previously, and its due date. I then add another line for LATE FEE (2%/month), and enter in however much the late fee is. I give 2 weeks grace after the initial 30 days for my customers, where I just send a copy of the original ...


2

I use FrontAccounting (which is Web based, but on my own server, not in the cloud). My handling of retainer-based client probably also works with some other packages. Let's say a customer buys 100 hours at $90/hour. There are two separate aspects to this: billing, and tracking the hours used. They may or may not be linked. I handle them completely ...


2

If you have had an income and never paid taxes you have a bigger problem than how to deal with reporting from Fiverr. So you have either never had a job in your life as the reason you never paid taxes or everyone else is paying more because you are not paying at all. That said, any freelancer income is reported as "other wages" on your annual 1040 filing. ...


1

NO. If you have a disease I believe you don't go searching in Google and cure yourself based on strangers' opinions, but you will go to a doctor and get a checkup and then a therapy if needed. The same is with accounting information, you won't trust the opinions of people from all around the world for your personal accounting. Indeed is almost sure that ...


1

I am from Germany but I expect the rules are similar in UK. If you want to know it for sure you should ask a tax consultant. In Germany you have to mention the delivery date on the invoice and the customer has to consider this as well. You can not send an invoice as a LTD that did not exist at that time. If you do it differently you might face problems in ...


1

I Can Understand asking these type of question to your clients is very tough but surely you can put some smart question . =>Asking for client satisfaction is very import over your work . Most of the clients pay late just because they were not happy with your work or they might need more modifications. =>Always try to find the reason behind late payment ...


1

This is a pretty neat idea, because a lot of freelancers (myself included) struggle with late payments. What's probably really important is to get a picture of these types of companies - are there certain things that make a company more likely to pay late? Is the client large, medium, small, or a single-member/entrepreneur? Is there a chain of approval for ...


1

Q1: yes, but financially this would be silly if you intend to make your living off of it, also regarding liability having a company is the better choice. Q2: No, unless you get a VAT number / become VAT registered. Not charging VAT means you also don't get any VAT back when you purchase something. Q2.1: Obviously you need to pay that to the government. If ...


1

The way my accountant had me handle this was to create a liability account in QuickBooks called "Loan from Kyle". I had a few times where I had to deposit money into my business checking account, and I categorized the deposit as this account. Then, on the balance sheet, it's properly displayed as a liability, and it's recorded that the money came from me. ...


1

Usually, you should get this number by filling a form at the government business registration center for your self-employed work. They will give you the business number the buyer requires. Technically, they don't need that number but some clients may require it. It won't help to go through Elance or any other freelancer website.


1

https://www.linkedin.com/pulse/us-companies-can-legally-hire-foreigners-living-other-rich-mba/ "Non Residents" “As a general rule, wages earned by nonresident aliens for services performed outside of the United States for any employer are foreign source income and therefore are not subject to reporting and withholding of U.S. federal income tax.”


1

I am not a tax professional but do have a bit of experience with transatlantic issues. I also know a CPA who has experience with international tax matters. Generally speaking, the rule is that you must file US income tax returns if either: You are a US person (anybody physically in the US, or a US citizen or US permanent resident regardless of where they ...


1

Yes, you can! You will just have to be sure that the cost of running such a construct is less than what you gain from it. Such IP/license/ptent boxes usually involve setting up multiple companies in different countries. Setting up a company means in many jurisdictions these days that you need to rent some kind of office (yes, can be some kind of shared ...


1

Quickbooks desktop version will let you do "Progress Invoicing" which is what you're describing. The online version, unfortunately, does not. You'll create a progress invoice for the total amount, for example, $100. You'll set the progress to 50%, the invoice will total $50 and the customer receives that. When the job is done, update the progress to 100%, ...


1

Like others, I create a specific folder for each project I start. Here's a typical structure: Software Development --<project name> --Designer work //the client hired a designer --Screen shots --Code --Terms --Invoices --Backups --passwords.txt Terms are the legal documents I signed with the client. When the ...


1

I am using Google drive, dropbox and onebox. This is a result of client preferences for file transfer. I also create a Google drive folder for every client regardless of their use of the drive. At the top of each GD client folder I have a ganntter project file. If the client also shares a GD folder, this is a sub folder of the main client folder. I do not ...


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