The legal side

[Tindris]

For the last few years I have done one or two graphic design jobs here or there, been paid $40 for a design or task now and then. It hasn't been a steady income really and you could hardly call it freelance.

However, I have now begun the process of trying to freelance more regularly with a steadier income and have been trying to do my research on the legal side of things. There are several aspects I have been looking into and I was hoping that some other FP members could help to shed some light on a few important things.

Terms of service, client agreements, contracts - While I know how to write up these things I still wonder over the credibility of them at times. What are you allowed/not allowed to put into such contracts and how must an agreement be made? Is it enough to get an e-mail or Skype message saying that the client agrees to the terms or do I need something that has actually been signed?

Business and Taxes - I have an income from a day job some times of the year, but what about the money I earn online? How can I even show this money appearing, for tax purposes ex. (No, I don't want to pay tax, but I also don't want a lawsuit on my hands for tax evasion). Must one have a business name to work under, ex. a freelance company or can one just work as a "normal person".

Age - I may only be young, but that doesn't mean I can't do a good job. Is there anything to consider legal wise? I am legally an adult in the country where I live.

My place on the web - In order to be able to create a website on the web in order to try and get clients I need to have these other legal issues sorted. Only then can I actually claim to be a freelancer, otherwise that becomes false marketing, no?

Any views and experiences with these questions are welcome!

 

[Dean]

I'll give you a little piece of my experiences and maybe you can take something away from it. 🙂

Contracts, terms of services, client agreements etc. Any kind of agreements or contracts made between you and your client(s) should first be consulted with a lawyer for the purposes of wording and the validity of agreements across the world. No, going to a lawyer will not give a stamp on your files but you can be rest assured that an angry client will not be able to find a loophole and make you go bankrupt.

How can the agreement/contract be made when you and your clients are worlds apart? For example, when you purchase hosting from Simplix.net, before making the purchase you are asked to "agree" to our terms of services. The client clicking "proceed" or "okay" or "purchase" then is legally entering into a contract with you or your company. And most web hosting companies will do this. Now, when I had the opportunity of meeting potential web design clients in person, I brought along a hard copy of our terms of services and the client would have to verbally accept and enter into a contract with Simplix.net. The important key to this is clearly stating in your terms of service the actions (such as described above) will legally bind you (the client) into an agreement/contract. For a online ventured web design freelancer, sending an email attaching your terms of service and stating the client must read and agree to the terms before starting work, is a form of legal binding (if the client asks to proceed). No physical signatures are necessarily required unless a very large business transaction is in place.


I have a job, and taxes are automatically cut from my paycheck. Where I live, NYC, if your income is below a certain amount (different for individuals, small business and corporate), you are not required to file your taxes.

Age is a very tricky part of entering a contract or doing business. Age restrictions vary and are dependent on countries and states. You must abide by local laws and restrictions. Most countries do not allow you to enter into a contract if you are under the age of 18.


Not necessarily, freelancer or contractors usually do not enter long term agreements or contracts...pretty much what makes them freelancers/contractors. You work per project/contract(short term).

 

[Tindris]

Thanks for your reply Dean, it is the part about taxes that I am struggling with the most. Yes, I have a paycheck and that gets taxes cut from it, but what about your online income? Do you declare that as an income?

 

[Dean]

Thanks for your reply Dean, it is the part about taxes that I am struggling with the most. Yes, I have a paycheck and that gets taxes cut from it, but what about your online income? Do you declare that as an income?

In NYC when you file your taxes you only declare incomes which are over X amount. It is different for each state and I'm sure for each country.