5 Legal Tips for Freelancers

We are living in the golden age of freelancing. As more and more companies get used to the idea of hiring temporary workers plucked from a global online market, it has now become possible to work from home, choose your own schedule and manage your own clients.

However, for many freelancers and businesses alike, there is still a lot of confusion about what exactly the legal framework for this type of activity is. The rapid advance in technology has so far outpaced the level of information that the general public has about freelancing. From paying the right taxes to making sure everybody gets a fair payment, there are a few areas you need to understand before entering the world of online freelancing, whether you’re someone who wants to make a living out of this or a company that’s looking to reap the rewards of the freelancing revolution. That being said, here are five tips you should definitely take to heart about the legal side of this ever-growing business:

1. Protect your assets

Familiarize yourself with the laws of copyright before you produce or buy content online. For businesses, this means always using patents or trademarks to protect your logo and brand. For freelancers, it entails knowing exactly what will happen to the content you’re producing. Many websites require you to transfer your copyright to the client that’s purchasing your work, in which case you might not be able to post or send it elsewhere.

2. Always agree on deadlines

Another important aspect of freelancing is that it lacks the careful time regulation present in traditional 9-to-5 employment. While this may be a boon for freelancers who like to take time off between requests, it makes it that much more important that both sides agree on working dates from the start. Many websites encourage this practice by requiring that work be performed inside a given time limit, but if you prefer direct hiring you should actively focus on making sure that everybody is on the same page. Running afoul of deadlines can have consequences that should be stipulated in the initial agreement.

3. Pay attention to local employment rules

For many people, working online is still embroiled in a rather murky territory as far as legality is concerned. But as this type of work edges closer into the mainstream, tighter regulation and rule enforcement is bound to follow. So do your best to learn about the permits that running such an operation might require, as well as the taxes you’ll be required to pay in order to fulfill your duties to the government. The laws might differ according to your country or state, so be sure to get the information that applies to your case directly.

4. Get your agreements down in writing

Perhaps the single most important thing you can do. Often overlooked in today’s high octane online market, a contract can specify the exact terms in which you’d like a job to be carried out, as well as offer protection from bad business practices for both the employer and the employee. A few agreements and contracts can cover all your freelancing needs.

5. Find a legal adviser

Not everyone has the time or inclination to wade through all the various clauses, exemptions and procedures that make up the bulk of contracts nowadays. So, if you have trouble understanding “legalese” and can afford to do so, then by all means invest in someone who can bring that kind of knowledge to the table. It may not be cheap, but getting some quality legal counsel can help you save on taxes and manage risk over the long term, so it’s definitely something you should at least consider.

By now you’ve become familiar enough with the rules and regulations of online freelancing to get started. As a freelancer, whether you choose oDesk or Elance (merged as Upwork) or if you prefer working directly with clients, you’ll find that as long as you provide quality service, there will always be someone in need of your skillset. As for companies, the joy of being part of a global community, not to mention the financial flexibility that this kind of arrangement often allows, is more than enough to make it an entirely feasible alternative to traditional employment.

Image source: Pixabay

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