Place Your Company Under An Umbrella-ella-ella

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One of the hardest tasks that all freelancers and small business owners are faced with is trying to find new clients and sources of work. Most hustle hard and approach potential new clients themselves. But there is a different approach you might want to take. Umbrella companies are companies that can act as an employer of freelance workers and small companies, and they can source them new work projects. Once a business or freelancer starts working on contracts for the umbrella company, they are paid through a pay-as-you-earn system.

Tempted to sign up to one of these umbrella companies? Here are some pros and cons to bear in mind.

All Your Invoicing Is Taken Care Of

Many self-employed individuals get really frustrated about having to spend hours writing out and managing all of their invoices. This is time that they aren’t paid for, and that could be used for getting on with more important work. Thankfully, all umbrella companies like crystalumbrella.com will take care of your invoicing for you. They will also keep an eye on the due dates and chase any payments that are late. So that’s part of your business administration taken out of your hands!

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It’s A Good Way To Get A Taste Of Freelance Life

If you are considering moving from full-time employment to life as a freelancer, working this way for an umbrella company to start off with will make the transition easier. You will get the chance to sample freelance life and discover whether it is for you or not. It should also give you a good idea of how much money you will need if you do want to become completely self-employed without the help of an umbrella company. You can then shop around at various loan companies like smallbusinessloans.co for start-up capital for when you do take the plunge. Not only that, though, but working with an umbrella company will give you an idea of what you should charge your clients when you do go it alone.

You Might Lose Some Tax Benefits

If you set up your own small company, you will receive quite a few tax benefits. Because of these, your yearly tax bill will be significantly reduced. Unfortunately, once you sign up to work with an umbrella company, you won’t be able to receive the same benefits. As a result, you might start to receive much larger tax bills.

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Working Through An Umbrella Company Can Be Quite Limiting

When you are fully self-employed or have set up your own company, you will find that you have the chance to do whatever you want. You’ll be able to grow your business at your own pace and take on any kinds of projects that come your way. However, you will be a lot more restricted once you sign up to an umbrella company. So, if you have a through and through entrepreneurial spirit, working with an umbrella agency might feel like your wings have been clipped! As you can see, you need to think long and hard before going with an umbrella-ella-ella.