Tip 1: When working with freelanced projects and tasks, you may keep reporting your freelance work and status as additional income on your personal taxes.
Tip 2: As a freelancer, you may formally establish a business (in Hong Kong) if you have a plan to build a long-term freelanced career. Choose the business structure that best suits your work and/or operation. In most cases, registering a sole proprietorship would be sufficient for the purpose.
Tip 3: A legally registered business in HK can shield you from personal liability and provide tax advantages, especially a limited company. You will have no problem even working from your home office.
Tip 4: For a foreigner who have years of working experience and have made much profits each year, if at the same time you are planning to relocate to Hong Kong for a better life, you may seriously consider setting up your company in HK, and getting your Hong Kong visa application done by applying for an investment work visa. The visa is for an entrepreneur.
Tip 5: Sign a contract for the project. A contract between you and your client does not need to be more than 20 pages. A contract not only give you something to fall back on when things are about to go wrong. A good contract can usually set expectations and raise key questions that should have been resolved in advanced.
Tip 6: One concern when doing freelancing job is the instability of job when consistent income is never guaranteed. What the freelancer should do is to take up a few smaller projects (or clients) at the same time to spread the risk (if there is any).
Tip 7: A full-time employee who is employed by a company is paid for each month that she works. This is not the case with a freelancer. A freelancer may not get paid for every hour she spends doing work, especially the work that involves finding new clients, managing existing clients, creating bills, and more. The freelancer has only that many hours per day that she can spend. Therefore, being able to manage time becomes much more important.
Tip 8: A freelancer should always use some online platforms or websites to build up her personal and professional brand. For example, she may be a web designer. She can sign up and create her work profile on a reputable designer platforms. This way, potential clients may be able to find her and send her project requests.
Tip 9: For a web designer doing freelancing, create demonstration of your past work with your client. You can show this to potential clients who you are pitching. They may be impressed by your previous work and the way you have handled the projects. Companies like Legal Zoom, Zen and others are great for LLC formation.
