It’s exactly sixteen years since I founded G75 Media as a limited company. It’s also exactly twenty years since I started freelancing as a copywriter. In late autumn 2003, I was approached by a former employer to quote for completing a key element of the job I’d recently left on a freelance basis. I did so gladly, using my Yahoo email address and submitting an invoice in my own name.
It didn’t take me long to realise that companies would rather deal with another company than with a private individual. That’s especially true when it comes to something as nebulous as copywriting, where the quality of work can vary hugely between one contributor and the next. Companies often have to trust a hired freelancer to be professional, and that’s much easier to do if they have a recorded trading history and a proprietary email address. Who’s to say firstname.lastname@example.org won’t simply take a paid deposit and vanish into the ether, or deliver a load of ChatGPT-penned nonsense?
How does a freelance limited company operate?
By setting up a company, you are making a series of pledges:
- To maintain an accurate list of directors, secretaries and employees with Companies House.
- To prepare end-of-year accounts, ensuring that any incurred taxes are paid timeously.
- To ensure all debts are paid off before the company is closed down.
Each of these actions reassures a potential customer that they’re not dealing with some fly-by-night scammer, especially as limited companies need a registered head office address to which correspondence can be directed. Companies usually have a website and a proprietary email address, alongside business reviews by past and present customers.
CASE STUDY: Imagine you’re a prospective employer, advertising a freelance job vacancy. You receive two responses – one from email@example.com, with company details and a registered head office address at the bottom. The other is from firstname.lastname@example.org, complete with a Sent From My Mail.com Account footer. Which one would you regard as being more plausible and promising?
Some people opt to be sole traders because it’s easier – no annual statements to be filed, and no VAT returns if your annual turnover exceeds £85,000. However, ‘easier’ does not necessarily equal ‘better’. It certainly won’t impress a prospective client as much as a registered business, even if that business is effectively a one-man band. G75 Media has always been a trading vehicle for my own freelance services, and despite a few unsuccessful attempts at employing other freelancers, it remains my own business. People who contact G75 Media speak to me directly; people who engage our services benefit from my award-winning writing; people who receive invoices do so alongside a friendly message I’ve penned specifically for them. Being a limited company doesn’t make you seem impersonal or distant.
Taking care of business
If you’re concerned that setting up a freelance limited company sounds intimidating, it really isn’t. Companies House do most of the legwork for you, registering the business with temporary personnel who immediately step aside and appoint you as the director. All you need to do is find a company name not already in use, select a legally permissible head office address, and appoint an accountant to handle financial affairs. From there on, the development of the business is entirely in your hands, including decisions about websites, social media activity and marketing. Because a freelance limited company will be more appealing to clients than a sole trader, you’ll have the best chance of growing rapidly and establishing a name for yourself.