The Basics of Setting Up a Legitimate Freelance Copywriting Business

Learn why it’s crucial to have the correct systems in place to operate your business, no matter how big or small.

Legitimate Copywriting Business 

So you finally did it! You decided to start your own freelance copywriting business. Congratulations! But did you do everything you need to do to really actually be legit? And I don’t mean legit in the cool sense, I mean legit in the eyes of good ol’ Uncle Sam? Let’s go through the necessary steps that I took when starting my own business, and make sure you know how to properly set your business up in order to operate legally and efficiently.

Set Yourself Up

After I decided to turn my side hustle into my full time gig and start a legitimate business, the first thing I did was get my LLC. This department was uncharted territory for me, so at first I felt like this wasn’t necessary but with the expert advice and guidance of some good people around me (especially my husband) I went ahead and did it for my own protection. Even if these things can be a little intimidating, you still need to set yourself up legally with the government, no matter how big or small your business is. It is crucial! There are a lot of different options to choose like an LLC or S Corp. My best piece of advice in this department is to ask as many questions as you need until you understand and can make an informed decision. 

I went through Legal Zoom which is an online service. The website is simple to use and has prompts to follow that ask questions to help figure out what the intentions of your business will be. For me, an LLC made the most sense, so I went with that option. Then I chose my business name. I decided to keep it fairly generic so that I would be able to pivot my business focus at any point in the future. The sky’s the limit with business names. Some people use their own name or even a made up word like Google for example. That worked out pretty well for them. There is also a fee involved so you need to decide what level of investment you are comfortable with when choosing. But the main goal here is to go through the process and get your EIN. This is your tax identification number that the government is going to need you to have so they know that you are a legitimate business, and so you can pay them taxes. So that is your first and most important step. It is fairly easy and I do recommend Legal Zoom. The process only took about a month to complete including the required waiting periods.

Business Banking

The next step I took was to head over and get my business banking set up. Choose whichever banking establishment you prefer, such as Chase, Bank of America, Wells Fargo or maybe a credit union. You want to open up a business checking account and choose a business credit card that you’ll run all your business transactions through. The credit card part is fun because they sometimes have good incentives and you can pick the card that will benefit you the most with their bonuses and points. I usually use my points on cash back but depending on your business you might want something with great travel rewards or other fun perks. Meet with a banker and get yourself all set up with your business checking account and credit card. Keep in mind you may need to have a certain amount to open the account and you may have to keep a minimum balance in your checking account to forgo a monthly fee. And they are also going to need your EIN. So that is why this is the next logical step to take after your business is set up legally. 

The major reason for setting up business banking is because you need to keep your business and personal banking separate. It’s shocking how many people don’t do this. It is really important to keep all of that separate because the government wants to know where your income is coming from, especially if you are out there doing it on your own. They are super nosy and like to keep track of those things, so keep your little legal ducks in a row.

Accounting Software

The next thing you want to do is choose an accounting system or software to help manage your finances. I chose a free online software called Wave. Another popular one is Quickbooks and there are a lot of other options out there as well. But I love Wave. You can track all of your online invoices through this software and keep everything nice and neat in one safe place. You can also link your business bank accounts with the software and it keeps track of where the money is going, which is really convenient, and what it’s all about when tax time rolls around.

Quarterly Taxes

Pay those quarterly taxes! I highly advise you to do this. It keeps you on the up and up and just makes that end of the year much less daunting and a little less shocking with what you owe. So do yourself a favor and stay on top of these each quarter, you’ll thank yourself later. In fact, just add it to your calendar for each quarter right now and you’re already one step ahead.

Personal Banking vs. Business Banking

I already touched on this subject but it is extremely important to keep your personal banking separate from your business banking. I have 2 different establishments for my personal and business, and every month I direct deposit what I “pay myself” from my business account into my personal checking. I have both accounts linked to each other as well as linked to my accounting software. And all those transactions are also then tracked within Wave.

Be Legit

Don’t have the shiny object syndrome about being an entrepreneur.  Everyone makes being an entrepreneur sound so sexy and easy. They say you just have to show up online, be on social media, just grow your Instagram and you’ll have a 10K month and blah blah blah. Yes, all of that is true, however, you still want to be a legitimate business owner. 

Energetically, when you set yourself up with the government with your tax ID number and have your accounting software in place, you are putting out the energy that this is serious, this is for real, this is your calling, this is your passion and then that energy is going to be reciprocated by people taking you seriously, by the government taking you seriously, by getting approved for loans when you need them, and so on. 

Where your focus and energy goes is going to be sent back to you. If you are giving things like finances, payroll and accounting attention with respect, love and gratitude, that is what it will show you back in return in my experience. So it is worth getting everything set up properly in the very beginning early stages of your business. Do what makes sense for you within the different investment levels and do your research as things differ from state to state as well. Here in California we love our taxes so they are required to be paid a little more often than other states, but it’s all good cause I don’t like pot holes either and they go towards fixing things like that. Plus I’m very grateful to have the means to be able to pay my taxes in the first place.

Another thing to keep in mind, is that if a situation like COVID or a personal tragedy that affects your business comes up in the future, having everything legally in place will do nothing but benefit you and make the process of applying for loans or other types of assistance much simpler. And if you have some kind of block about needing assistance from the government, I encourage you to work through that and find a way to realize that there is no shame in it, because as a taxpayer that money is already yours if you need it. So take advantage of the opportunity to set yourself up for success and utilize the help at hand.

Steps to Success

So let’s recap the steps to take to set your business up legitimately. First, choose your type of business (LLC for me – this might look different for you), choose your business name, and get your EIN – you’ll use this over and over as your business evolves and grows. Next, set up a business checking account and apply for a business credit card where all of your income will come in through. Get an online accounting software – take advantage of one of the excellent free options out there. Pay those quarterly taxes – it’s a good idea to get on that train. Keep your personal banking separate from your business banking and pay yourself each month so that you can show that your business account pays a personal account. Treat your money and business with respect and your income will respect you as well. 

If you want to learn more about this I recommend listening to Amanda Frances. She is like the money mindset queen. She also will flat out tell you how you just HAVE to get your business set up legit to be taken seriously by not only your clients, colleagues but the universe as well. Go check her out!

If you have any more questions, feel free to join me in the Copywriting Girls Club on Facebook HERE. This is my private Facebook group where we discuss everything copywriting related and it’s tons of fun!

You can also find me on Instagram HERE.

And for a little bonus, I have a quick hot tip for your legally legit business. Always always always repurpose your content! It saves SO MUCH time and effort when creating all the social media posts, emails, landing pages, email funnels, etc. for your business. I created this “Spread Your Magic” Free Guide that gives you 20+ Ways to Repurpose Your Soul-Driven Content. YOUR words deserve to be read by more people, on more places and platforms, so grab your copy HERE.