22 checklists that the first year of freelance work regretted "should have been done early"

Freelance is not a work style in which you belong to a specific organization and receive a salary, but a work style in which you are rewarded by providing your own specialized skills. Some people are attracted to the freedom to work at their own discretion, which is the merit of becoming a freelancer.


But what makes a freelance job different from when you were working at a company? What is needed to open an independent business? There are many things you don't understand.


So, this time, we will introduce the basics of "What is freelance?" And "What is the difference from a sole proprietor?", As well as what to do when starting work as a freelancer. For example, I have summarized the knowledge and information to make a good start as a freelancer, such as things that should be absolutely prepared among company employees, insurance / tax related procedures, money, etc.


You can also download the "Set-up check sheet for becoming freelance" to help you become freelance. Please use all means!


Ask if you can be freelance


table of contents

What is freelance? 

Freelance work example

Characteristics of freelance work style

Is there too much freelance? Number of freelancers

What to do before retirement

Procedures required to become freelance

Freelance tax, accounting and accounting

Freelance business card / virtual office

Sales / study / networking after independent opening

What is important because you are freelance? What is the difference between success?

With this, it's okay! Setup check sheet for freelance (Excel / PDF download)


Check your freelance income prospects

 

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What is freelance? 

In general, freelance refers to a work style that provides one's own skills as a professional without belonging to a specific company or organization. One of the merits is that it is a free working style due to the nature of contracting for each case and carrying out the work, unlike the working style employed by companies.


In many cases, the sole proprietor who works as described above is called freelance, but if you set up a one-man company and work in the same way, you may be included in freelance. In some cases, one is called "freelance" and the worker himself is called "freelancer".

 

What is a sole proprietor?

"Self-employed person (individual business owner)" is a division of business and tax system, and a person who is not hired by a company or a person but does business individually without establishing a corporation (company) is a sole proprietor. There is "corporation" as a companion word to "individual business owner", and this corresponds to the case where a company such as a corporation or a joint venture is established instead of an individual business.


Due to the nature of working without belonging to a company or organization, when working as a freelancer, it is basic to do business as a sole proprietor.


Differences between freelance and sole proprietorship

The difference between freelance and sole proprietorship lies in what they point to and in the business they are targeting. Depending on the context, there are cases where either word can be used, and there are cases where it is necessary to distinguish between them.


For example, in the context of "because I am a freelancer, my income has dropped due to the influence of corona" in the sense that my income is not stable unlike a company employee, it is likely that even a sole proprietor will understand.


To give another example, in the case of a contract that "I can only make a contract with a corporation", the contract with the freelance of the sole proprietor is NG, but the freelance that establishes the corporation If so, there is room for negotiation.


Since the business targeted by sole proprietors is wider, there are businesses and occupations that are not freelance even if they are sole proprietors. For example, without establishing a corporation, you can open a private shop, agriculture, or fishery. If you are a business person, you will be a sole proprietor.


However, it is hard to say that such a work style is freelance because it is different in nature from the freelance work style of "contracting according to the project" and "providing one's own technology and skills as a business". ..


Etymology of freelance

The word freelance originally comes from the English word "freelance" which means mercenary ("lance" refers to a cavalry with a spear). In medieval Europe, soldiers who do not serve mainly and are hired in war units. Just as mercenaries go to the battlefield in each battle, current freelancers have something in common in that they contract on a case-by-case basis.


Also, it is said that the word freelance was made famous by the Scottish historical novel "Ivan Ho" published in 1819, and the following is a passage.


I offered to give Richard my free spear ... Thanks to the tumultuous times, a fighting man can always come to work.

Reference: Excerpt from "Ivanhoe" (written by Walter Scott)


As you can see, freelancers have been attracting attention in recent years, but surprisingly, the word has a history.

 

Related article: Definition of freelance. 


Definition of freelance

There is no strict definition of "freelance". If it is a work style that contracts for each case instead of an employment contract, it may be widely included.


For example, the 2019 White Paper on Small and Medium Enterprises (Small and Medium Business Administration) defines it as follows.


Since there is no clear definition of "freelance", this white paper states that "it does not belong to a specific organization, does not employ employees all the time, does not have stores for consumers, etc., and is a business operator. A person who runs a business that consists of the person providing the technology and skills is defined as freelance.

Reference: Small and Medium Business Administration `` White Paper on SMEs 2019'' Chapter 2 Excerpt from Freelance / Side Business Entrepreneurship


From the above, it can be seen that the requirements for freelance include points such as "does not belong to the organization" and "business provides skills".


In addition, the "2016 White Paper on Small and Medium Enterprises" (Small and Medium Enterprise Agency) has an item called "Job types in which freelancers run businesses." It seems that some people, such as carpenters, swordsmen, planters, and landscape architects, recognize that they are freelancers and work in professions that are also called single masters.


In this way, freelance definitions and interpretations are diverse, and new professions and work styles are born as the times change. Affiliate advertising is posted on the blog as a way of working to make money without being hired by a company. Recently, YouTube has emerged that makes money from video ads and PR videos through partnerships with rewarding bloggers, affiliates and companies, but there will be ways to make such money in the future.


Other terms such as "freelance," "self-employed," "nomad," and "SOHO" may be treated the same as "freelance," depending on the context and person used. Let's see the difference between these freelance synonyms.


Difference between freelance and freelance

In general, there is no big difference between freelance and freelance.


On the NTA website, you can see the classification of "free occupations such as doctors, lawyers, writers, actors, professional baseball players, diplomats, carpenters, etc." In addition, it is distinguished from sales of businesses, finance, transportation, repairs, services, etc. called "wholesale, retail, food and drink, manufacturing, construction", and is consistent with freelance in that it is not employed by companies or companies. .. We sell our own expertise.


Reference: Step 2 Calculate income such as income | National Tax Agency


However, in the above categories, for example, individuals who run practitioners also enter the freelance business, so it is hard to say that the images of freelance and freelance work are exactly the same. 


The difference between freelance and self-employed

In the dictionary sense, self-employed is a self-employed industry, and freelance is also a type of self-employed. However, the NTA website "Commerce / Industry" also states "Income from self-employment such as fisheries, fisheries, agriculture, and free employment," and industries other than freelance are also included in self-employment. -employment.


In addition, the Ministry of Internal Affairs and Communications Statistics Bureau Labor Force Survey defines "a person who runs a private business" as a self-employed person. This is because the manager of the company organization is classified as an officer separately from the self-employed person. , Companies are not included in self-employment. Therefore, it is hard to say that a person who has established a company and is active as a freelancer is self-employed.


Difference between freelance and nomad


Nomad is also a commonly used term synonymous with freelance. It comes from "nomads" which means "nomads, wanderers", you don't have to work in the office, you can spend your time in cafes and coworking spaces. It refers to the way of working for people. Also known as a nomadic worker or digital nomadic worker.


Nomads are often used with a focus on working in different locations, so they are not always consistent with freelance, which is one of the characteristics of not being employed by a particular company or organization. .. Hmm.


For example, a company that always allows remote work (telework) can work outside Nomad's office. In this case, I work for a nomad, but I All occupations involved in IC production are sometimes collectively referred to as "graphic designers". In order for a freelance graphic designer to win a project, it is important for the client to trust his or her skills, so it is common for a freelance graphic designer to gain experience at an advertising agency or production company before becoming independent.

 


Job description of writer type

Annual income of freelance writers and editors

Annual income writer * Reporter, editor

Less than 1 million yen 21.3% 12.8%

1 million yen less than 3 million yen 31.9% 46.8%

3 million yen less than 5 million yen 23.4% 23.4%

5 million yen less than 8 million yen 16.0% 12.8%

8 million yen less than 10 million yen 4.3% 4.3%

10 million yen or more 23.2% 0.00%

* Writers, screenwriters, critics, copywriters, etc.


Source: Processed and posted from "Small and Medium Business Administration White Paper 2016"


What a freelance writer does? 

A writer is one of the indispensable occupations for creating text content. In addition to writing sentences, it is also the role of the writer to do research, go to interviews, and interview as needed. Depending on the medium and product in charge, it may be classified as a web writer, copywriter, scenario writer, technical writer, etc. Freelance writers are commonly referred to as "free writers." In crowdsourcing, there are some projects that you can participate in from inexperienced regardless of experience or achievements.


What a freelance editor does? 

Editors plan, edit, and manage content for publication in books, magazines, and web media. My main job is to adjust the content and manage the schedule until delivery while communicating with the occupations that are actually responsible for production, such as writers, photographers, manga artists, and illustrators. Due to the nature of work, editors often have a connection in advance to receive orders or request production before becoming independent as a freelancer.

 

Job description of other occupations


What a freelance counselor does? 

Counselors who help solve problems and stress are active in a wide range of fields such as medical care / welfare, education, and industry. Qualifications are not required to become a counselor, but it is important to earn the trust of the other person, so having a qualification makes it easier to win freelance projects.


Representative qualifications of counselors include the national qualification "Certified Psychologist", "Certified Psychologist" certified by the Japanese Psychological Association, "Clinical Psychologist" certified by the Japan Clinical Psychologist Qualification Association, and Japanese industry. There are "industrial counselors" certified by the Counselor Association.


What the freelance photographer does? 

Photographers are required in all media, including television, newspapers, books, and websites, and their genres range from news, sports, art, entertainment, fashion, advertising, and bridal. Photographers who specialize in photography are also called "photographers." Freelance photographers make money in a variety of ways, such as taking pictures that meet their needs at the request of their clients, or selling their own photographs.


Freelance YouTuber work

YouTuber (YouTube) is a common name for people who publish their own video content on the video sharing and distribution site "YouTube". Basically, you can earn advertising revenue according to the number of subscribers to the channel and the number of times the video is played, and some people are working as full-time YouTubers. YouTuber, which allows you to decide the content and update frequency of videos at your own discretion, can be considered as one of the freelance work styles in a broad sense.


What the freelance teacher does? 

To become an instructor, you generally need to have a track record in a particular field and a wealth of knowledge. The role of the instructor is to convey knowledge and know-how to students in an easy-to-understand manner at events, seminars, and classes. Instructors tend to have the image of a side job, but some are working as full-time freelance instructors.


What a freelance hairdresser does? 

Cosmetologists are an increasing number of people who work freelance. In the case of freelance cosmetologists, there is a pattern of concluding a business consignment contract with a salon and treating customers at that salon, and only the place / facility in the form of a face rental There are two patterns that you can do by yourself from attracting customers.

 

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Characteristics of freelance work style

Now that you have an overview of freelance, let's take a look at the unique characteristics of freelance in order to deepen your understanding.


Freelance concludes a business consignment contract for each case

A major feature of freelance is that it concludes a business consignment contract for each case, and in the case of business consignment, it is roughly divided into contract contracts and quasi-delegation contracts depending on the type of project and the content of the contract. For example, in many cases, a contract is for a project that develops and delivers the requested application, and a quasi-delegation contract is for a project that resides in a client company to perform work (details vary depending on the contract). 


Freelance is not subject to the Labor Standards Act

In principle, workers do not include freelancers who contract in the form of business consignment rather than concluding an employment contract with a company, and are not subject to the Labor Standards Law. Since there is no concept of extra wages or minimum wages, some items may not be worth the money depending on the balance of the project's guarantee and schedule.


There are no holidays, so you may end up working endlessly. There is no annual paid leave like an office worker, so if you force yourself to break your body and reduce your work, your income will also be affected.


Freelance income is unstable due to lack of work

Compared to office workers who receive monthly salary, freelancers may have different timings to receive remuneration depending on the existence of projects, contract details, payment arrangements, etc., and their income tends to be unstable. I will.


How to find a job when you don't have a freelance job, how much money to save in case you don't have a job, etc. are the points that only a freelancer can think of.


Freelance is difficult without skills and inexperienced

Freelance is a work style that earns rewards by providing highly specialized skills, so few people will ask for work to freelancers who have no skills or are inexperienced.


In addition, in the case of office workers, on the premise that they will work in the medium to long term, there are cases where they are hired in anticipation of training from an inexperienced state without skills, but freelancers are expected to work as professionals, so clients It is difficult to expect an education.


It's easy to become a freelancer, but in order to avoid becoming "I can't live at this unit price ...", I need to study a wide range of things such as skill improvement and sales activities.

 

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Is there too much freelance? Number of freelancers

According to the results of a questionnaire survey by the Cabinet Office announced on July 24, 2019, the number of freelancers is estimated to be about 3.06 million to 3.41 million, which is about 5% of all companies (main business). , Side business total).


Reference: Policy Issue Analysis Series 17 --Cabinet Office


According to the report, those who are classified as "employed self-employed" are close to freelancers in their main business, and employment self-employed increased from 1.28 million to 1.64 million in the 30 years from 1985 to 2015. There are various theories as to whether the number of freelancers is increasing too much, but it can be said that the number is increasing due to the influence of work style. 

 

Ask if you can be freelance


What to do before retirement

Make a credit card

Make a loan

There are things you can't do when you become freelance!

"Freelance" is to fulfill the dream of independence and work with individual ability without belonging to any company. When you hear it, it sounds free and hopeful. However, no matter how strong you are or how much you earn an annual income, alas, when you work freelance, it is a fact that your social credibility is lower than that of someone who belongs to a company or organization.


If you plan to make a credit card or take out a new loan for a house, car, etc., definitely leave it as an office worker.


In fact, some seniors had a painful experience of trying to make a credit card but being refused, becoming freelance while waiting for a mortgage loan, and reducing their initial loan amount by more than one million yen.


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Procedures required to become freelance

Procedures that you want to complete as soon as you retire. The table below summarizes the procedures that should be done at least immediately.


Checklist of procedures to be done immediately after retirement

 Procedure window Deadline What to bring

① Switching from welfare pension to national pension Municipal office From the day you retire

Within 14 days Pension certificate, welfare pension, etc. that shows the date of retirement, seal, driver's license, etc.

② Switching from company health insurance to national health insurance Municipal office From the day you retire

Within 14 days Identification card such as health insurance disqualification, seal, driver's license

③ Notification of opening of private business (notification of opening) Tax office within 1 month Identification card such as seal and driver's license

④ Blue filing approval application Tax office within 2 months Identification card such as seal, driver's license

If you are worried about your old age with only the national pension of ①, you can voluntarily join the "National Pension Fund" * 1. In that case, the amount received will be paid in addition to the national pension.


* 1: What is the National Pension Fund system? | Learn about the system | National Pension Fund Association


Freelance health insurance

Regarding (2) health insurance, you can continue to take out the company's health insurance for two years after retirement. The amount of insurance premiums will be doubled because the company will pay half of the insurance premiums.


When I hear that the amount is doubled, is it National Health Insurance without hesitation? I tend to think. However, for some people, it was cheaper to continue to join the company's health insurance (voluntary continuation) than to join the national health insurance! There are some things, so it seems better to compare them well.


This is because the amount of National Health Insurance is decided according to the income of the previous year. At that time, the upper limit of the annual payment amount is set, but the upper limit may change depending on the municipality, and the insurance premium itself also differs.


In addition, there is an upper limit on voluntary renewal premiums, making it even more difficult to tell which premium will be cheaper. First, call the National Health Insurance Division or the Health Insurance Association of the municipality where you live, inquire about the amount, and then decide.


In addition, some national health insurance premiums are calculated and estimated on the website of each municipality. If it is difficult to make inquiries during the hours when the office window is open, it is a good idea to check there.


However, if you want to continue your company's health insurance voluntarily, you must apply by that time because the deadline is within 20 days after retirement. Please note that you will not be accepted after that.


I hope this article is helpful for you. 


If this is good or informative, then please tell in comment section. 

Thanks for reading.