Help! New Freelance Writer -- and I'm Confused!

[Thomma Lyn]

I'm getting started as a freelance writer, and I'm extremely confused regarding the business part of things.

1. Freelance writers, do you need to have a business license in order to work as a freelance writer (self-employed)?

2. What kind of PayPal account is best for a freelance writer to receive payments?

I hope I don't sound hopelessly ignorant, but if I do, well, I've got to start somewhere. :) If anybody can help me, I'll be eternally grateful!

[WildScribe]

Hi there. I have a premier account, and it works fine for me. Also, you do not need a business license. I'm sure you could get one if you wanted, but I don't personally know of any freelancer who has.

[jeffo]

Indeed, WildScribe is right on. No license required.

Some people have premier accounts, but others don't. Any PayPal account will work, I've not seen anyone have problems with me not having any special type of PayPal account.

Good luck!

[Thomma Lyn]

Thank you so much, WildScribe and Jeffo. You've both been very helpful. So many things to learn -- but I'll get there. I'm enjoying the new challenges, and the writing diversification as well.

[CatMuse33]

The bad thing about not having a premier account is that you can only transfer $500 per month into your checking account. Not an issue if you use a Paypal debit card or request a check from Paypal.

It used to be there were no fees ever with a personal account, which was why I opened one and I'd use it for my first $500 each month, but they've changed that so there's really no benefit to using a personal account now. Both are free.

[jana13k]

Thomma - your state/city MAY require a business license, so check with your local city office first. There was just a big turmoil in either Philadelphia or Pittsburgh because the city reviewed state tax filing and even though bloggers had reported minimal income (we're talking only dollars here) correctly on their taxes, the city insisted they MUST pay for a business license each year that cost hundreds of dollars. So check with your city office just to be safe.

[SaraSutherland]

A business license in my city only costs $15 a year. :) I have one, but for freelancing.

[Thomma Lyn]

CatMuse -- thanks! I went with a PayPal business account, since I have a new gig that requires invoicing.

Jana -- thank you for the info! I read that recently as well. So ridiculous to require bloggers get business licenses!

Sara -- I got one, too. In my county, it's only $22 a year.

[Greenwolf103]

It was in Philadelphia.

http://money.cnn.com/2010/08/24/technology/philadelphia_blogger_tax/index.htm

Had something to do with bloggers obtaining income from Google Ads on their blogs.