Establish a business or continue as a freelancer?


I have been working as a freelancer from 5 years (from first sem of my graduation) for various domains (mostly ERP's for textile industries and Graphics software for the same). Now I am about to complete my Master in Computer Application (around July 2011), Should I establish a proper business in IT sector or continue working as a freelancer. I am 22 now and doing business is not a child's game. I tried to get a job but facing problem due to low grades in my high school (my graduation grades are good [6.3] and masters is [7.2] till now).

I have great understanding of the projects development and clients interactions. I have delivered my applications to 25+ big companies and they are using it. Most of the peoples say to me that I should establish a business.

If I chose to establish a business, what are the steps should I take such as advertising, company promotion, hirings, etc etc.

There will be another problem I am seeing regarding hirings. As I am young enough, the person I will hire will be definitely elder than me. Will they listen to me or believe on what I say or plan to do?

What should I do?

Business Plan

asked Dec 21 '10 at 00:16
Vinod Maurya
123 points
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3 Answers


Should I establish a proper business
in IT sector or continue working as a

Ah? You mean you conducted fraud the last 5 years by doing business without a proper businesws registration?

In pretty much every legislation a freelancer IS a business. Not a corporation, but you do have to register, pay your taxes and all that stuff.

Maybe if you would state where you live (country, you know - laws tend to be country specific for some funny reason), then maybe we would understand the differences, but in all cuontries I know of working as freelancer is illegal without registering as a business with (like for getting a tax number, also to write VAT).

So, by all accounts, if yuo worked 5 years as a freelancer you HAVE a business.

answered Dec 21 '10 at 01:37
Net Tecture
11 points
  • I have been paying taxes to the government and also have tax and account numbers and registered under state gov. – Vinod Maurya 13 years ago
  • So waht is your question then? You are a business for 5 years. – Net Tecture 13 years ago
  • But worked alone-- without any proper plans, work architectures, etc etc. I want to make a brand for my business. I was working from home from these many days. – Vinod Maurya 13 years ago
  • No problem then. Get a business name up, put up plans. All that does not chane the "legal aspect". You are a business. Just start putting it into form. This is, btw, the harder part in IT. Money is easy to come by (high margin buseniss), but a brand is... hard to form. – Net Tecture 13 years ago


There is just no way to answer this. Your question is much like "How long is a piece of string?"

If you provide more context and tell us what kind of business, how you attract talent, what you're going to sell, how you imagine your sales channels work, etc. etc. we might be able to advice you.

With that said, my guess is continue working as an independent contractor, within you own business. I'm sure you're good at it. Meanwhile, learn the principles of running a business, take a Business Administration 101 class, etc.

Your question implies that you'd currently be less successful with running and scaling a business.

answered Dec 21 '10 at 02:00
John Sjölander
2,082 points
  • Your question implies that you'd currently be less successful with running and scaling a business. --- I am totally agreed with you. I was not much concentrated on it because of my studies along side. – Vinod Maurya 13 years ago
  • :-) I can't encourage you enough to explore if you can start a business, for just yourself or with employees, in the future. It's exhilarating and very, very fun! – John Sj√∂lander 13 years ago



First, don't be intimidated by people that are older. I have successfully managed a work force where I am the youngest member for years. If you're confident and smart, a good hire will recognize that. Also, the most successful people in business surround themselves with others that are more smart/savvy/talented than they are.

As for starting a with an accountant and talk about your options. In the US, it's likely an LLC is the easiest solution for you, but I can't tell you that for sure. Also, get some insurance. For both the LLC and insurance, you're probably looking around $2K. Now, you're protected, meaning if things go wrong in your business, it won't legally leak into your personal situation.

As far as growing a business, there's lots of books and advice out there. One of my favorites is "The Knack by Norm Brodsky." My advice, go slowly and only spend money when it makes sense. When you're you're finally busting at the seams, only then should you think about bringing in employees. When you do, talk to an accountant to ensure you're handling it appropriately.

Obviously, there's much, much more that could be discussed but hopefully some of this helps. Best of luck!

answered Dec 21 '10 at 01:39
Matthew Dorian
292 points
  • Thanks! I will read "The Knack". – Vinod Maurya 13 years ago

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