5 TIPS TO GET STARTED AS AN INDEPENDENT CONTRACTOR/FREELANCER Revised 8/2020 1. DEVELOP AN ENTREPRENEURIAL MINDSET 3. LEARN AND PROMOTION STRATEGIES • Think about what you enjoy doing and/or have a natural • Learn to promote yourself via social media (e.g. talent for that can be turned into an opportunity to LinkedIn, YouTube, Facebook), blogs, and . generate income. • Learn to create your own (use free platforms • Research the type of entrepreneurs/freelancers/ online, such as wix.com). do in your field of study or line of work. (For • Join an independent network (e.g. Upwork). example, you can Google: “What type of contracting • Become active in your local business community work does a Psychology major do?”) and network; have business cards ready to hand out • Interview entrepreneurs/freelancers (such as friends, (consider adding a QR code to link directly to your family or faculty) in your field of study or line of work to website/LinkedIn profile). learn about the type of work you could and how to get • Join Immigrants Rising’s Entrepreneurship FB Group to started. market your products or services and meet like-minded • Register for the FREE UndocuHustle Learning Hub to individuals. get trained on the basics of entrepreneurship. 4. ACCESS FINANCIAL CAPITAL • Consider getting certified (e.g. Google Analytics Certificate) or pursuing additional training in a specific • Build with your SSN or ITIN and maintain good line of work (see list of Professional Licenses available credit (read Credit and Financial Capital Guide). to anyone, regardless of status in CA through SB1159). • Determine how much money you need to launch or • Get relevant training by participating in accelerators, scale your business. incubators or local business training programs (find a • Research different types of business/personal capital local provider on venturize.org). you can access (e.g. credit cards, loans, lines of 2. UNDERSTAND CONTRACTING/FREELANCING credit, CDFI loans). CONSIDERATIONS • Research grants and fellowships you can apply for (e.g. Immigrants Rising’s Entrepreneurship Fund). • Make sure you clearly understand the differences between and independent / 5. FILE AND PAY TAXES freelance work (read Basic Facts About • Search for a reliable tax preparer or accountant, Entrepreneurship). especially if it’s your first time filing as an independent • Make sure the type of work you wish to do follows contractor/freelancer/business owner; use the IRS’ federal and state independent contractor guidelines VITA clinic locator to find a local tax clinic near you. (read Introduction to Working for Yourself). • Be prepared to pay both federal and state taxes (set • Research the standard rates for your product or service aside about 20% of earnings). (For example, you can Google: “How much to charge • Keep track of earnings (use an app, such as for services”). MyHours.com). • Complete a W9 Form for each client you work with for • Keep track of business expenses (use an app, such them to keep track of your earnings (does not require as Foreceipt to keep track of receipts). Note: It is SSN or work authorization, only used for tax purposes). recommended you keep receipts from all of your • Become familiar with and make sure business expenses for at least 6 years. to sign a contract with every client (free templates are • W2s will be mailed to you by employers to report available online). earnings as an employee and 1099s will be mailed to you by each client to report earnings as an independent For more detailed information about income contractor/freelancer/business owner. generation through entrepreneurship and • You will only receive 1099s from clients from whom freelancing, visit immigrantsrising.org/resources you earned $600 or more, but you should report all earnings, regardless.

Immigrants Rising helps you make decisions based on your potential, not your perceived limits. Visit our website so you can see what’s possible: www.immigrantsrising.org. For inquiries regarding this resource, please contact Iliana Perez, Research & Entrepreneurship Director, at [email protected]