Legal Definitions - freelancer

A freelancer is an individual who offers their professional services to multiple clients on a project-by-project or task-by-task basis, rather than being a permanent employee of a single organization. Essentially, a freelancer operates as an independent contractor, taking on assignments from various clients without forming an exclusive employment relationship with any of them. This arrangement grants freelancers significant autonomy over their work schedule, location, and the specific projects they choose to undertake. However, unlike traditional employees, freelancers are responsible for managing their own business expenses, paying their own income and self-employment taxes, and typically do not receive employer-provided benefits such as health insurance, paid time off, or retirement plans. Their compensation is usually tied to the completion of specific deliverables or hours worked for each client.

• Example 1: Graphic Designer
  A graphic designer creates logos, brochures, and website layouts for several different small businesses. They invoice each client separately for completed projects, set their own working hours, and manage their own design software subscriptions and tax filings.

  How this illustrates the term: This designer is a freelancer because they work for multiple clients on a project basis, control their own schedule and tools, and are personally responsible for their taxes and business expenses, rather than being on the payroll of a single company with employee benefits.

• Example 2: Software Developer
  A software developer is hired by three different tech startups to build specific features for their applications. They work remotely, manage their project timelines across all clients, and submit invoices upon reaching agreed-upon milestones.

  How this illustrates the term: This developer functions as a freelancer by providing specialized services to multiple clients simultaneously, without being an employee of any single startup. They have the flexibility to choose projects and manage their workload, but also bear the responsibility for their own professional development, taxes, and lack of employer-sponsored benefits.

• Example 3: Marketing Consultant
  A marketing consultant advises a local restaurant on its social media strategy and, concurrently, helps a non-profit organization develop a fundraising campaign. They charge each client a fee for their consulting services, often on a retainer or project basis, and operate their own independent business.

  How this illustrates the term: This consultant is a freelancer because they offer their expertise to various clients as an independent professional. They are not an employee of either the restaurant or the non-profit, allowing them to manage their client portfolio, set their own rates, and handle all aspects of their business operations, including taxes and benefits.