Tips on Becoming a Private Contractor
Private contractors benefit from the opportunity to control their own business destiny. If you have a skill for which people would pay, becoming a private contractor may be a wise choice. While this type of work can prove lucrative, success in the field does require personal effort, as you act as your own business leader.
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Proper Permits Are Key
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Depending upon the type of private contracting you intend to perform, you may be required to obtain a permit to perform your work. If you fail to obtain this requisite permit, you could face stiff fines. To determine whether a permit is required, and if so, how to apply for it, visit the Permit Me portion of the site Business.gov (see Resources).
Get It In Writing
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When you first begin working as an independent contractor, it can be tempting to skip over written contracts and opt instead for oral agreements. While an oral agreement may be sufficient at times, operating without written contracts is a risky business. As you start your business, create a contract and use this written agreement every time, protecting yourself and your money by doing so.
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Take Care of Taxes
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When you work as an independent contractor you are solely responsible for paying your taxes. If you fail to pay your taxes in quarterly payments throughout the year, you will have to pay them all come year's end. To ensure that this doesn't happen, use the IRS.gov tools for deriving an estimated tax payment, and make your estimated payment quarterly.
Build a Client Base
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To be successful as an independent contractor, you must have a broad base of customers. If you only serve a few people here and there, you will quickly find yourself customer-less. As you establish your business, put great effort into building a customer base. To do so, offer referral discounts and other enticements to get people to recommend you to others.
Make Your Service Quality at All Costs
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As the old adage goes, you never get a second chance to make a first impression. The first impression that customers get of your work will be the one that stays with them. Particularly during the early days of your business, focus on quality above all else to ensure that you establish a good reputation for yourself.
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