Frequently Asked Questions
Everything you need to know about getting started working for yourself, from taxes to websites to landing your first client.
Note: This FAQ was written with independent consultants in mind, but the insights apply to almost any kind of self-employed work—whether you’re freelancing, building a business, or figuring it out as you go. It’s not a rulebook, just lessons from my own experience that I hope make the path a little smoother (and less lonely) for you.
—Leslie
Consultant? Solopreneur? Business Owner? What should I call myself?
It is so simple to say you are a _____ at _____. But when you make the transition to working for yourself, that formula might not be a perfect fit anymore. There are dozens of terms for how to brand yourself: consultant, freelancer, independent contractor, solopreneur, entrepreneur, CEO and Founder of your business. And your parents probably don’t understand what any of them mean.
I call myself a consultant. It implies that I work on a project basis and that I bring specific expertise to the company that I offer as an advisor. I think this best represents what I do, and I like that the word “consultant” comes with a bit of professional prestige.
If you’re trying to pick what works for you, start with what feels most true right now. What kind of work are you doing? How do you want to be seen? And how much does the label help (or hurt) when it comes to getting hired?
Some questions to ask yourself:
Do you want to emphasize expertise? Words like consultant or advisor can signal seniority and experience.
Do you work solo and like it that way? Freelancer, independent contractor, or solopreneur might be a better fit.
Are you building something bigger than you? Then founder, CEO, or business owner might make more sense—even if you’re a team of one for now.
There’s no one right answer. And you can always evolve it. Titles don’t need to be set in stone—but they can help people understand you more quickly and confidently. Pick the one that opens the right doors.
How do I figure out what I could offer a client?
When I first started, I was so insecure about my elevator pitch that I asked potential clients a million rapid-fire questions so they wouldn’t get the chance to turn it around and ask me about myself. Turns out, this is an excellent sales strategy!
Instead of me saying, “this is specifically what I offer, do you need it?” I was able to listen to their problems, identify which specific pain points I could help them with based on my past experience and skills, and pitch them a project to do exactly that. In other words, I was able to say, “you’re in pain! And I’m the solution.” (This is referred to as solution selling if you want to read more about it.)
Not sure where to start? Try browsing job postings on contract and freelance marketplaces (there is a great list of platforms to check out here). Find a few listings that make you think I could do that!—then drop the text into your AI tool of choice and ask it to identify common themes in the roles, responsibilities, and deliverables. That can help you start shaping your own offering around what’s actually in demand.
Then, once you’ve got a few themes in mind, test them out. Schedule a few coffee meetings with people you’d see as potential clients and try it. Don’t sell them—just ask them what keeps them up at night and see where your skills might solve real problems.
After I sold a few projects doing similar things, I started to see the patterns (for me it was marketing, business development, and project management). I refined my services—and finally whipped up an elevator pitch—around that.
What do I say in an elevator pitch?
All you need is this formula: “I am a ___ who helps ___ to ___.” My brilliant friend Alex taught this simple framework to me. And also wrote a great blog post about it.
How will I find my first client?
99% chance: you already know your first client, or are going to get a referral to your first client from someone you already know. I’d bet good money on it.
That means the easiest way to find your first client is… to ask people you know! The absolute best thing you can do is send a thoughtful email to a group of people you trust that says:
You’re one of my favorite people, so I wanted you to know…
I’m taking on project work!
I’ve got particular expertise in XYZ
I’d treasure any intros to people you know that could use someone like me
When I left my last job, I made a (short!) list of people I wanted to stay in touch with and sent them an email to say just that: “I’m leaving, wanted to tell you I appreciate you, I’m figuring out what’s next and in the meantime, I’m taking on projects as a consultant. If you know anyone who needs startup marketing and partnership experience!” And you know what? The editor-in-chief of Cosmopolitan was on that list and she reached out to say she’d love to hire me to help with her upcoming book launch.*
*Disclaimer: this was my second client. My first client came from a late night phone call with an old coworker. I told her I wasn’t ready for a real job but might take on contract projects, and she put me in touch with someone who hired me 2 days later!
Does my consulting business need a name?
Nope! You don’t need to come up with a splashy name before you take on your first client. You have a name already (your first name + last name), and that is all you need to do your first project. Because—remember, kids!—you are most likely going to be hired by someone who already knows your name.
If you absolutely know that you want to hire several employees in the future (to build a bigger company, like an agency), it’s worth it to choose a name soon-ish.
If you don’t know what you want out of your business just yet (which is 99% of people), it’s a-okay to go by your parentally-given name for… ever. Having a “company name” isn’t going to make or break your business. But it might be a helpful confidence boost. You get to casually drop to your high school friends that you founded a company, and you can use phrases like “we believe” and “our philosophy”… but in all seriousness, some industries are more accepting of one-person shops than others. And the feeling of legitimacy that comes from having a business name is important.
I am mortified when I think back on many hours of my life I have spent stressed out about this very thing. I own an unhealthy number of domains and can think of at least 7 different names I’ve put on name tags at networking events to describe “the company of me.” I wish I was brave enough when I started to just be me. It only took 5 years for me to finally feel comfortable using www.myname.com instead of www.randomcompanyname.com.
You choose what works for you!
Do I need a website?
The short answer: no, not really!
The longer answer: if you feel the need to create a website, a one-page “about you” at www.yourname.com is all you need when you start. I promise.
When The New HQ co-founder Kaylin first started working as an independent consultant, she created the perfect MVP website. I’ve shared it with so many people as an example of how simple and effective a personal site can be—it’s a low-lift way to make it official: you’re in business. Take a look here.
In my early consulting days, I agonized about a website: what to write, how to describe my services, if I should hire a designer and a developer and get new headshots…. But when you are starting out, your website is really just a “checkmark” that someone visits to make sure you are a real human who can string words together in a full sentence. There is a 99% probability that your first clients are going to come from relationships, whether those are people you already know or people you get connected to when you put yourself out there as looking for clients.
Please, pretty please don’t spend too much time, energy, or money figuring out your website when you get started. Your time is better spent getting clients! And you can update your website down the road.
Do I have to send a proposal?
While a proposal is not a mandatory part of the process, I recommend it. Sending a proposal (even if it’s just one page) ups the level of professionalism of your relationship with the client, and clarifies expectations from the start. The New HQ published a much longer guide to this that covers what sections to include, how to format it, and more—get it here (and read a few more proposal tips here.)
Do I have to send and sign a contract?
YES! 1,000,000% yes. A contract protects you if things get messy or if you have any issues (like not getting paid on time, or being asked to do 3x more work than you thought you agreed to). I have a standard contract that I reviewed with a lawyer when I first started. If you aren’t sure you want to invest in paying a lawyer yet, Fiverr Workspace has a free contract template created in partnership with the Freelancers Union. It does require creating an account, but it’s free and straightforward.
How do I determine what to charge?
My rule for determining your rate: whatever you think you should charge, triple it. When working for yourself, you have business expenses and a decent amount of non-billable time (time spent pitching, time spent on admin, time between clients) that you have to account for as you are pricing yourself.
I use the following formula to determine my minimum* rate:
[$$ I want to make per year] / ~2,000 working hours in a year x 3 = my rate
Example: $100,000 / 2,000 x 3 = $150 per hour
If you want to see what other people in your industry charge, Freelancing Females has an amazing crowdsourced rate sheet.
*I charge big corporate clients that I know can pay (like Viacom or Google) more than this minimum. Sometimes for a project at a startup or nonprofit that I’m really excited about but that I know likely can’t pay my rate, I’m willing to drop it (and sometimes comp it or work for equity). It’s a little art + a little science to figure out who to charge what.
How do I structure my fees: hourly, project fee, day rate, etc.?
Most companies want you to charge hourly, but I happen to think it’s the pits for everyone! It requires tracking your time, doesn’t incentivize you to work efficiently, and doesn’t allow you time to learn or improve your skills to do the best job you can.
I prefer to charge a retainer (a set amount per month) for an agreed-upon scope of work and approximate number of hours. For example, $3,500 a month for ~4-6 hours a week. I start with this arrangement for 3 months, and if it works for both me and for the company, keep it going.
I think retainers are great for everyone. You know you have money coming in every month, the company knows how much they are paying you every month, you don’t waste time tracking hours, and there is an ongoing commitment to working together, meaning you are incentivized to build relationships and solve bigger, tougher problems together.
One more quick note on pricing: I like to offer clients a few different pricing tiers to choose from, each with a different level of support. This gives them flexibility based on their budget, and it also helps set clear expectations around how much time and involvement each option includes.
Do I need to file an LLC, or an S Corp?
I ran my business as a sole proprietor for the first 3 years and only filed for an LLC when a (very big, very corporate) client required it for me to be an approved vendor. There are legal and tax benefits to having an LLC or an S Corp, but also costs and forms.
For obvious reasons, you should talk to a professional about your specific situation (I’m not an expert!), but for quick reference, here’s a summary of what I’ve experienced as the biggest differences:
You don’t have to register or do anything special to do business as a sole proprietor. Seriously, you don’t have to do anything. You have to pay to file and register an LLC, both an upfront cost and an ongoing “registered agent” cost (in most states). The forms can be a headache and it isn’t necessarily cheap ($500-$1000).
When you fill out tax forms that get sent to your clients, you use your social security number if you are a sole proprietor. When you file for an LLC, you are given an EIN (employer identification number) that you now use for these tax forms. Some people are very sensitive about sharing their SSN—if that’s you, consider setting up a formal business structure.
If you get into business trouble (lawsuits, fines, debts, etc.) and you are a sole proprietor, it is your personal responsibility and thus your personal assets are at risk. That means your house, your car, etc. If something goes wrong and you have an LLC or an S Corp, the only assets that are at risk are your investment into your company. (LLC stands for “limited liability company. All makes sense now, right?). From a risk perspective, an LLC or an S Corp definitely reduces your liability. But also, it’s a very rare scenario which you should weigh against the costs of filing and maintaining it.
If I file for an LLC or an S Corp, how do I do it?
I filed for my LLC in Delaware using Delaware Registered Agent. It was super easy to file an LLC in Delaware and relatively cheap, though there are ongoing fees every year. When I filed my business, I lived in New York and there is this bizarre requirement to publish an announcement about your LLC in a newspaper for 6 weeks in a row. Huh? I didn’t want the headache so decided to file in Delaware!
Depending on your business structure, it might also make sense to file as an S Corp. Collective is a great resource if you’re considering that approach.
Talk to me about taxes.
Taxes when you run your own business can be complex and confusing. But—lucky for you!—my dad was a tax attorney and I convinced him to write a Quick and Dirty Guide to Taxes for freelancers and anyone with a side gig. It likely applies to you if you’re in the early stages of creating your business.
How do I send invoices?
For the first invoices I sent, I made a professional-ish template in Microsoft Word. And then I got smart and signed up for Quickbooks. It’s sooo easy to create an invoice and send it and look like you’re a real business owner. You can even have your client pay you by credit card (though there’s a fee). Plus, Quickbooks makes taxes so much easier (see above).
I block off 3 hours on the first business day of every month to send invoices and get my financial house in order.
How do I track expenses?
One of the best parts of running your own business is that you get to write-off business-related expenses. To write-off an expense means you subtract it from your business earnings at the end of the year, which reduces your taxable income. Meaning: you pay less taxes. There are so many things you pay for to run your business: a co-working space membership, phone and Internet, mileage or travel costs to client sites, etc. Which is all to say, it’s important to track your business-related expenses throughout the year!
As a no-brainer first step, pick one credit card to use as your “business card.” You don’t have to open a new credit card, and it does not have to be a designated business credit card! The important part is to only use it when you are paying for something business-related.
As a second step, pick or open a separate checking account to use for a) getting paid / depositing payments and b) paying business-related bills. Again, it doesn’t have to be a business bank account yet (trust me, it’s a hassle and requires mountains of paperwork).
You can easily sync both the credit card and checking account you’re using for your business with your Quickbooks account and voila! Clean books.
What is the biggest mistake new consultants make when working on a project?
Not setting clear expectations. At the beginning of your project, make a clear list of the deliverables that you are going to turn over or the outcomes that you will work to make happen. Revisit that list at regular checkpoints during the project and show them at the end! We move fast and have a tendency to move the goal posts on ourselves. Make sure you clearly write down what you were supposed to achieve so you get proper credit for delivering it!
This is baked into the proposal template I always use (you can download it here), so I am in the habit of documenting scope from the start.
Should I work from home?
My rule of thumb about working from home is to do it infrequently enough that it always feels like a privilege. If I overdo it and work from home everyday for 3 weeks, I’ll feel trapped. I generally work from home 2-3 days a week and at coworking spaces the rest of the time.
If not home, where should I work?
Find a coworking space that is convenient for you. If there isn’t one (or you don’t pay for it yet), do a rotating coworking space with friends at each other’s houses.
I am obsessed with Regus, a giant network of coworking spaces. It’s definitely, definitely not the sexiest place to work—in fact, it’s quite corporate—but it’s very affordable (I had a plan for less than $100/month), there are offices everywhere (I’ve worked from San Diego, Dallas, New Orleans, Zurich, Copenhagen, Hong Kong, and beyond!), it’s always quiet, and I can bring a guest for free.
Kaylin has found virtual coworking to be a great way to stay productive while feeling a sense of community. It can be as simple as setting up work sessions with other independent consultants, friends, or colleagues—intentional time to work together, even if you're all working on different things. She’s met amazing people through lunchclub and has heard great things about the virtual coworking space, Flow.
What should I use to track my time?
I love an app called Toggl, and the free mode provides tons of features.
How should I organize my time?
Every morning, I wake up and make a schedule of exactly when I am working on what. If I need to write a draft of an email, I block off 30 mins to do that. If I need to prep for a meeting (create an agenda), I block off 30 mins to do that.
It sounds like overkill, but if I don’t schedule my work, I fool around on social media all day while the anxiety builds that I am doing nothing with my life, and I don’t have anything to show for myself at the end of the day. Blocking time like this makes a big difference in making sure you make progress each day!
My client is asking for me to work more than we agreed to. What should I do?
This happens all.the.time. The first thing to do is preempt it by building in a little wiggle room in your quoted rate or proposal. That way, you can spend a little time working on something extra for your client without it feeling like you’re being squeezed. They will be delighted that you made their life easier!
But, if it gets to be too much and you’re being asked to go WAY over your agreed upon scope of work, I’ve found that it works well to simply ask “with the time I have dedicated to our work, which project is highest priority? I want to make sure that I am focused on the most important work.”
How do I know what I’m doing??
I don’t! But no one does and that’s an important life lesson you’ll hopefully learn as you approach mid-life.
In addition to reading articles, newsletters, and Substacks or going to events in my industry every now and then, there are two real differentiators that help me tremendously:
A network of peers: I have a small group of friends who work as consultants or marketers who I reach out to regularly. I bounce ideas off of them, talk things out, get their input on places I’m stuck, have them do a once-over of an important email to check for typos before I hit send. And of course, I return the favor for them!
Mentoring: By teaching other people, I realize how much I know! I regularly mentor college students who are starting businesses, and always go out to coffee with people who ask for informational interviews. The little things that they aren’t sure how to do and I think are blatantly obvious make me appreciate how far I’ve come. Plus, putting what I’ve learned into plain English helps me codify it so I can repeat it in the future (for clients!).
These two strategies—peer support and mentorship—are a big part of why we started The New HQ in the first place.
We’ve been lucky to spend a few years working independently and learning a lot along the way (some of it the hard way). And we’ve noticed more and more people choosing this path, especially as new tools, communities, and resources make independent work feel not just doable, but exciting.
Working this way has been a major unlock for us, and with The New HQ, we want to keep learning and pay it forward. We’re building the resource we wish we had when we started.
And we want this to be valuable for you, so tell us what you’re figuring out, what you’re stuck on, or what you want to dive deeper into. Truly, ask us anything. We’d love to figure it out together.