Well, my two week experiment with working on the road is now over. I am now back in my home office and I must say that there truly is “no place like home” when it comes to work as well as to where you rest your head at night.
I was able to get plenty of work done, but not without problems. Several mornings I went to the local Panera Bread shop and worked, however the store had covered up all of its electrical receptacles therefore it was strictly battery power that kept my laptop going. This method worked out fine until the last day when all of a sudden my computer suddenly went into hibernation and shut down. I hurriedly packed up all of work, got in the car, and headed off to my family’s home where we were staying. Unfortunately, I wasn’t able to retrieve the article and I had to start over again. Fortunately, I was able to successfully finish the completion of that article that day and submit it to the client who accepted it as is and well before the Tuesday morning deadline.
The local library had internet access as did several hotels where we were staying. The library’s system was slow making downloads and the retrieving of email difficult. Nevertheless, I was able to finish up all of my projects, successfully bid on others, and I start this morning off very busy and ready to take on the world.
Yet, working remotely isn’t as easy and magical as it sounds. There are always things that don’t quite work out the way that you want, but it does allow you to go away, attend family functions, and even shut down for several days altogether. I like to think that my family benefitted from the trip and I believe that we did. Ultimately, that is all that matters.
When I was laid off from my last “secure” paying job I mentioned to my wife that I wanted to go into business for myself. With two small children at home, a mortgage to pay, and enough other expenses hanging over our heads, this option seemed somewhat crazy. Fortunately, a severance package and unemployment helped to ease my transition to freelance work and I managed to have some additional work lined up to get me started.
One of the first things I did was to set up my business as an LLC: a limited liability company. I used the services of LegalZoom to organize my company, saving myself some money over the services of a tax attorney. The advantages of running an LLC include: legal protection from suitors in the event I am sued for work that I have done. They can go after my business assets, but not my personal assets. In addition, the whole way of paying myself has changed: I don’t receive a paycheck, but I do make disbursements. These disbursements are not subject to social security taxes, but they are taxed on the federal and state level. Still, with tons of deductions every year [I pay our family's medical bills for starters], our disbursements are fairly low. Livable, but low. Plus, I take advantage of IRA contributions for my wife and me. We are a one income family, something we decided to do even before children arrived on the scene.
The disadvantages of an LLC are few. Start up costs are more and you have to register with the state to keep everything in order. Still, the little extra legwork is worth it and marketing myself as an LLC has been useful especially when I tell employers that I have officially set up myself as a business. Employers seem to appreciate that I made a little extra effort to formally organize myself. In addition, some are happy not to have to furnish 1099 forms for work that I do for them.
Is an LLC right for you? That depends on what you want from one. Contact a tax accountant to gain more information. After nearly four years of business, I have grown to appreciate what an LLC offers and my customers seem to recognize that advantage as well.
General | Matthew C. Keegan, 25 Jul 06 | 
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