How NOT to run a freelance business...

Trip

Trip

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If you, or somebody you know, is planning on running a freelance business let me give you a little tip I learned:

DO NOT higher somebody right off to take care of your money for you (recieve it, count it, sort it, and distribute it)...it's not smart. They'll take the money from you and never talk to you again. ARGH!

*BTW - I did actually higher him (a friend) and told him I would pay him for his work, but yea, he stole my money.
 
Freelance is like being a treasure hunter...you gotta be VERY judicious with your trust.
 
*Site update coming soon. And then I'll believe you when you say that. ;)

Now I just need to find a way to get clients to pay me directly. :(
 
Just invoice them and get them to write you a cheque, works for me. You might even want to think about starting a company as a sole trader or whatever your equivilent is.
 
I guess this guy isn't such a good friend after all. At least you learned a valuable lesson. :)

What kind of trouble are you having with people paying you? Are they trying to get you to take a credit card or something?
 
Well, for one, I currently do not have a bank account setup. I planed on getting one after my first payment, but that's been taken from me. So far clients have all offered to pay via PayPal, so I hired my friend to take care of that for me until I have some way to get the money.

Yea...
 
I'd say take your friend to small claims court, if the amount he stole is significantly more than the cost of going to court.
 
Anyone running a small freelance, or any small one or two person business, who hires someone to take care of his money is an idiot. If you don't want to take care of the business yourself, then don't start one. If you hire someone to take care of your money, don't count on it all being your money for long.
 
You're welcome. Always glad to put my two cents in. The best way to learn is by doing, but this was a hard lesson for you. You're young. As you grow, you'll learn some people aren't always what they seem.
 
Trip, if he took more than $300 to $500 that's generally a felony in most states. Check the laws where you are as amounts vary, but it doesn't require much. You might be able to use that as an incentive to him repaying you. bobw's 'good beating' idea also might be a secondary option.

As soon as you have the money, file a DBA with the local courthouse. I'm not sure about the laws/regs where you are, but here I can do that for a couple bucks then be able to get a std. business checking account to accept checks in either my name or the DBA name. There's no real tax advantages or disadvantages, just allows those checks to be written to the DBA name which makes tracking a little easier and allows you to meet 'business requirements' for most banks.


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update
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From Utah State Gov Website

76-6-412. Theft -- Classification of offenses -- Action for treble damages. (1) Theft of property and services as provided in this chapter shall be punishable:
(a) as a felony of the second degree if the:
(i) value of the property or services is or exceeds $5,000;
(ii) property stolen is a firearm or an operable motor vehicle;
(iii) actor is armed with a dangerous weapon, as defined in Section 76-1-601, at the time of the theft; or
(iv) property is stolen from the person of another;

(b) as a felony of the third degree if:
(i) the value of the property or services is or exceeds $1,000 but is less than $5,000;
(ii) the actor has been twice before convicted of theft, any robbery, or any burglary with intent to commit theft; or
(iii) in a case not amounting to a second-degree felony, the property taken is a stallion, mare, colt, gelding, cow, heifer, steer, ox, bull, calf, sheep, goat, mule, jack, jenny, swine, poultry, or a fur-bearing animal raised for commercial purposes;

(c) as a class A misdemeanor if the value of the property stolen is or exceeds $300 but is less than $1,000; or

(d) as a class B misdemeanor if the value of the property stolen is less than $300.


(2) Any person who violates Subsection 76-6-408(1) or Section 76-6-413, or commits theft of property described in Subsection 76-6-412(1)(b)(iii), is civilly liable for three times the amount of actual damages, if any sustained by the plaintiff, and for costs of suit and reasonable attorneys' fees.
 
One of the draw backs of filing a complaint against the scum bag, is that if you're required to report this income to the IRS, and don't.
 
While we're on the topic, how exactly do I do that? You know, tell the IRS about me getting money and such. I need to start doing that if I get money in often right?
 
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