How to Start a Freelancer Business
A practical order of work for going freelance, from choosing what you sell to getting paid by your opening client.
Going freelance means building a small business around your own skills: deciding what you sell, registering if your setup calls for it, getting a tax ID, planning for your own taxes and then billing the first client. Deposits, follow-ups on unpaid invoices and sales tax questions are on the freelancer invoicing guide linked below, so this page stops at the first invoice.
On registering, the SBA's launch guide (In the US, SBA, checked October 31, 2026) says "If you conduct business as yourself using your legal name, you won’t need to register anywhere." It also says "You might need to register your DBA" when you trade under another name, and points to state, county and city offices for the details.
On taxes, the IRS self-employment tax page (In the US, IRS, last reviewed or updated October 30, 2026) says "The self-employment tax rate is 15.3%." The IRS estimated taxes page (In the US, IRS, last reviewed or updated September 25, 2026) says sole proprietors "generally have to make estimated tax payments if they expect to owe tax of $1,000 or more when their return is filed."
Worked example, with sample figures: an opening invoice for website copy lists 12 hours of drafting at $60.00, 12 × $60.00 = $720.00, and one round of edits at a flat $150.00, for $720.00 + $150.00 = $870.00. Use your own figures; these are only an illustration.
Step-by-step startup guide
Follow these steps to launch your freelancer business on solid footing.
- 1
Decide what you'll sell
Pick the first service you'll offer and the kind of client you'll offer it to. That choice shapes your rates, your contracts and the rules that apply to your work.
- 2
Choose a structure and register if it applies
The SBA's launch guide (In the US, SBA, checked October 31, 2026) says "Register your business to make it a distinct legal entity." and "How and where you need to register depends on your business structure and business location."
- 3
Get your federal tax ID
The SBA (In the US, checked October 31, 2026) says an EIN is what you use "to pay federal taxes, hire employees, open a bank account, and apply for business licenses and permits". The IRS EIN page (In the US, IRS, last reviewed or updated October 16, 2026) says "You never have to pay a fee for an EIN."
- 4
Check local licenses
The SBA's launch guide (In the US, SBA, checked October 31, 2026) says "The licenses and permits you need from the state, county, or city will depend on your business activities and business location." Your state and city set the rules for your line of work, so look at both before you start.
- 5
Keep business money separate
The SBA (In the US, checked October 31, 2026) says "You can open a business bank account once you’ve gotten your federal EIN". A separate account keeps client payments apart from personal spending.
- 6
Send your first invoice
Bill the first client with the work done, the dates, the amount and a due date. The freelancer invoicing guide covers deposits and following up on unpaid invoices.
Tips for starting your freelancer business
- Have a W-9 ready when clients ask. The IRS's About Form W-9 page (In the US, IRS, last reviewed or updated June 27, 2026) says "Use Form W-9 to provide your correct Taxpayer Identification Number (TIN) to the person who is required to file an information return with the IRS".
- Pick a record system on day one. The IRS recordkeeping page (In the US, IRS, last reviewed or updated May 1, 2026) says "You may choose any recordkeeping system suited to your business that clearly shows your income and expenses."
- Put aside part of each payment for tax, and ask a tax professional how much fits your situation.
- Write down what each project includes before you start, so extra requests stand out.
How Billed helps you get started
Features to look at as you set up your business.
Client Profiles
Billed's features page says: "Create and save client profiles to bill them quickly."
Due Dates
Billed's features page says: "Set due dates for payment on your invoices so your clients know when they have to pay you."
Payment Reminders
Billed's features page says: "Send payment reminders to your customers to get paid faster on your invoices."
Recurring Invoices
Billed's features page says: "Save time by sending invoices on a regular schedule so you don’t have to create invoices again and again."
Frequently asked questions
Bill Your First Freelance Job
Create invoices, track payments and keep your clients' details in one place with Billed.
At a glance
| Stage | Where to look | Dated source |
|---|---|---|
| Registration | Your structure and any trade name | SBA launch guide (In the US, checked October 31, 2026) |
| Federal tax ID | The IRS EIN page | IRS (In the US, last reviewed or updated October 16, 2026) |
| Local licenses | State, county and city offices | SBA launch guide (In the US, checked October 31, 2026) |
| Your own taxes | Self-employment and estimated tax | IRS (In the US, last reviewed or updated October 30, 2026) |
| First invoice | Work, dates, amount, due date | Freelancer invoicing guide |
When this isn't for you
Written for people setting up freelancing as an ongoing business. For a one-off side job, a tax professional can say which of these steps apply to you.