I imagine this will be a very short, simple thread.

I have been in business for about 3 years now, and though I do not make a living off of my productions, I do see that happening very soon. I am beginning to seek out events as 'media' and certain events do not allow freelancers. Being that I started an LLC, even though I am 'self-employed' or whatever [ugh...hate that term]...doesn't that make me a "business?" If I wanted to hire an employee, or contract someone, I just have to do the paperwork. To my knowledge a "Freelancer" can not legally do that.

from Dictionary.com:
1. a person who works as a writer, designer, performer, or the like, selling work or services by the hour, day, job, etc., rather than working on a regular salary basis for one employer.
2. a person who contends in a cause or in a succession of various causes, as he or she chooses, without personal attachment or allegiance.

JS

Freelancer is a title, not a business model per se. I have "hired" other freelancers hundreds of times both as a "freelancer" and through my business (a sole proprietorship) and at all times the freelancers that I hired were tax deductible as business expenses. Remember, you are not HIRING them, you are CONTRACTING them.

Are you saying that sometimes you are a Freelancer, sometimes not? Was it your decision whether you took the position of "freelancer" or "sole proprietor? To me if taxes are handled the same there would be no difference.

I use the term "freelancer" when working for other producers out of convention and "sole proprietor" when referring to my own business. Technically they are all one and the same - all my income comes in through whatever stream and is classed as income and all my expenses are tabulated and written off against income. When I bill my "freelance" clients, I still invoice using my business name - my business chequing is Shaun Roemich DBA (Doing Business As) Gearhead Visual productions.

Excellent, makes sense. One more question, did you create an LLC (or other entity) or do you only operate under the DBA?

JS

Sole Proprietorship, Doing Business As...

In this case I thought the term freelancer had more to do with your relationship to the use of the final project. If you would be publishing the video then you aren't a freelancer. On the other hand if your shooting the video and then finding and selling it to another company to do the publishing/exploitation of the video, you would be considered a media freelancer.

If a company that will publish the work hires you in advance to do the work, you aren't a freelancer, you're working for them and they are using the video. But if you don't have a deal in place and you aren't going to publish the work yourself, you are a freelancer (with respect to this event). It doesn't matter what kind of legal structure you or your company is using. It more about who's using the work.

From Wikipedia: A freelancer, freelance worker, or freelance is a self-employed person who pursues a profession without a long-term commitment to any particular employer

I have been a freelancer for 37 years but have contracted to a single client for as long as 2 years, and did one particular clients work for 16 without a contract, and none of that prevented me from doing work for other clients, ergo, I am a freelancer. My business model be it sole prop, DBA, S corp, LLC, dosen't matter.

As a freelance person, I am not obligated to work for any one particular client, employer, company. I can and do work for many including if I chosse other people in my same industry. I have over the years done work for about 8 to 10 other video companies but I have also done work for AV companies, TV production companies, private companies, private individuals.
At the end of the year I do not receive a single W4 from anyone, but I do get a bunch of 1099s. No one withholds anything for taxes, SS (which I receive), health insurance or 401K.
I get to choose who I do work for and am not obligated to work for anyone I do not wish to, if that doesn't make me a freelance, than I think I need to re-read the definition.

Companies hire freelance people all the time to shoot, work on productions. The film & TV industry works all the time using freelance people who are employed on short term contracts to work on a particular production. A production company may only employ a small number of full time staff for example the producer and his/her secretary or even just the producer, or it may employ a larger number of full time staff depending on the size of the operation. The producer may or not be the director on a production and a production company may employ a number of producers (full time staff or freelance).

Broadcasters also employ freelance people on a short contract basis, although some have a rather quirky world view on them (BBC for example).

I believe the inland revenue considers a freelance (self employed) person to be a person who works for a number of employers rather than just one. You do find short term contract people being called freelance, but in tax terms they only ever work for the same employer on short term contracts.

Being a freelancer doesn't preclude you from having employees. I have four employees and we work completely on freelance projects.

I sell the services of myself and my employees. We don't produce our own products, but rather sell our services to others to build or create their products.

I suspect if these people only work for you full time, technically speaking they're not freelance, they're people who work for say a facilities company or perhaps even a sole proprietor which/who provides services to a production company or other clients. I suspect the freelance element depends on how the business operates and they tend to be individuals (although for tax reasons they may be operating as a limited liability company) who work for a number of clients.

I'm freelance and I engage other freelance technicians to work on a production with me for a production company or broadcaster for a short period - it tends to be at the most three or four people. However, they're not my full time employees and they work for many other people and companies.

The BBC operates a weird half way house system with it's short term contract staff, most of whom only work for the BBC. These people often get rolling contracts which get renewed.

I suspect if these people only work for you full time, technically speaking they're not freelanceThey are not freelance, they are employees. I own a company that provides freelance services.

I assume your company is hired to provide say a camera crew.

I am beginning to seek out events as 'media' and certain events do not allow freelancers.

Definitions aside, I'm curious what these events are and why they would exclude a freelancer. Are they using it as a synonym for stringer?

Being that I started an LLC, even though I am 'self-employed' or whatever [ugh...hate that term]...doesn't that make me a "business?" If I wanted to hire an employee, or contract someone, I just have to do the paperwork. To my knowledge a "Freelancer" can not legally do that.You do not have to form an LLC to hire employees. An LLC is a type of business entity. In general, there are three main types of business entities (in the USA):

1. Sole Proprietor
2. Partnership
3. Corporation (LLC, S-Corp, C-Corp)

"Freelancer" is not a business entity - it is a loose term to describe your relationship to a client or project. you are not bound by any particular laws because you choose to call yourself a freelancer.

I am beginning to seek out events as 'media' and certain events do not allow freelancers.Then don't call yourself a freelancer in these situations. When they ask who you work for, just say something like "I'm under contract with CurrentTV" or whoever is hiring you to do the shoot. If you truly are just showing up as a stringer hoping to capture footage to shop around later - then they are turning you away because they're not interested in that sort of media coverage.

Whenever I'm working for a broadcaster or whoever, I always give the name of that organisation. These days, with the celeb chasing gangs of photographers, it's understandable that organisers are cautious about allowing open access. They could've had bad experiences in the past from so called "freelance" people.

I know some news events are extremely tightly controlled and you have to apply in advance for accreditation.

Definitions aside, I'm curious what these events are and why they would exclude a freelancer. Are they using it as a synonym for stringer?

Hello Andy, it was a local/annual Bowl game. Now that I have a little knowledge in the area, I think that is exactly what they are using it as.

"Freelancer" is not a business entity - it is a loose term to describe your relationship to a client or project. you are not bound by any particular laws because you choose to call yourself a freelancer.

Thanks for summing this up Chris, I was beginning to get confused again. I never thought the term was used as a business entity, I actually thougth it was the exact opposite. Actually, I have no idea what I thought. Thanks for putting things into perspective.

In the UK, much depends on what Her Majesties Revenue and Customs decide you are. So I never have problems, being technically a 'sole trader' operating as a business, and registered for VAT. So I'm able to somehow legitimise my 'freelance' status. In the UK there are plenty of people who claim to be freelance, when they're really employees, although casual ones. The HMRC have plenty of ways of 'testing' your status.

This is one version of the 'official' test - although they have a few other versions that can be applied.

As a general guide as to whether a worker is an employee or self-employed; if the answer is 'Yes' to all of the following questions, then the worker is probably an employee:

* Do they have to do the work themselves?
* Can someone tell them at any time what to do, where to carry out the work or when and how to do it?
* Can they work a set amount of hours?
* Can someone move them from task to task?
* Are they paid by the hour, week, or month?
* Can they get overtime pay or bonus payment?

If the answer is 'Yes' to all of the following questions, it will usually mean that the worker is self-employed:

* Can they hire someone to do the work or engage helpers at their own expense?
* Do they risk their own money?
* Do they provide the main items of equipment they need to do their job, not just the small tools that many employees provide for themselves?
* Do they agree to do a job for a fixed price regardless of how long the job may take?
* Can they decide what work to do, how and when to do the work and where to provide the services?
* Do they regularly work for a number of different people?
* Do they have to correct unsatisfactory work in their own time and at their own expense?


In the media business, this doesn't quite work - use Bryan's example of the BBC - a freelance studio or OB cameraman fails the test, but may well still be accepted as a proper freelancer - I guess the big problem is just having a status that works. I do a few jobs for one company who won't take the chance, and they deduct tax at source - which my accountant simply claims back, and the tax people seem happy. What a mess!

Yes, in the UK many freelance crew members can find themselves taxed at source by employers (not just the BBC). Heads of departments tend to escape, but camera assistants and camera operators for example can find themselves on emergency tax codes paying the full tax and then having to claim it back. It's been like this for nearly 20 years.

This is one version of the 'official' test - although they have a few other versions that can be applied.Those are very similar to the "test" the IRS uses to determine if a person is an employee or a subcontractor. Many businesses try to pass off employees as subcontractors because it makes for less paperwork for the business, and saves them the 7.65% Social Security/Medicare contribution.