Web Worker Daily

If you’re just starting out as an independent web worker, there can be an overwhelming temptation to say, “this is great! I can work anywhere and any time!” The problem is that this can turn into working everywhere and all the time if you’re not careful. Even when you have no boss other than yourself, setting boundaries between work and the rest of your life is a good thing.

In addition to keeping yourself sane, there can be legal and financial reasons to draw lines around your business existence. Knowing some of the practical consequences can help you make better decisions as you launch your web working career. Here are five areas in particular to think about.

Business name: While there’s some benefit in terms of personal branding to doing business under your own name, prospective clients may be happier signing a contract with an actual business - even if it only has one employee. Choosing a business name also gives you an opportunity to market your services in a way that using your own name does not.

Telephone: If you only have a single phone line, there’s no way to guess whether that 9PM Saturday call is Aunt Sally or a panicky client. Having separate telephones gives you the luxury of ignoring one or the other - and it makes it possible to deduct the cost of one of them as a business expense. If you don’t want to spring for a second line, look at using something like Grand Central to let you manage your business line as a separate virtual phone number instead.

Bank Account: There’s no real argument to be made here; any accountant will tell you that commingling funds is a bad idea. Do not pass go, do not collect $200, until you go down to the bank and set up a separate business account.

Home Office: This one is trickier. There is a potentially large tax deduction for maintaining a home office, but it can be difficult to claim. We’ve got the basics to help you decide whether it makes financial sense to go for it. Even if you don’t claim the deduction, you may well want to set up a home office as a “safe harbor” to keep your business life physically separated from everything else.

Hours: If you made the switch to web work for flexibility, it might seem counterintuitive to limit yourself. But if your self-employment is taking over life, consider this remedy: set working hours and stick to them. They don’t have to be traditional; you can start at 5AM or 2PM if it suits you. But some of us find we’re happier knowing when we should be working and when we should be taking time off for ourselves.