How do you actually afford freelancing?

[Alexander]

So, I just got my first "real" "by the book" type of writing offer by a certain website, and it turns out I actually can't go ahead with it. Laws in Greece require me to register as a "business" to actually legally sell my articles, which means I also have to insure myself with a very brutal agency which starts out slow enough but eventually, after a few years, can add up costing over 450 euros / month, not to mention keeping this "business" properly, books and all to make sure I don't get fined on the first IRS check, is going to be so complicated I may need to regularly consult, if not hire an accountant which adds to the expenses. And then there's VAT.

Are laws in your country different, are you doing it "uder the table" or are you simply so awesome you can easily afford that kind of expense and still make a worthwhile living out of writing? I'm honestly curious because this looks like a dead end in my case. All I can hope to do is get a "proper" permanent staff position locally which isn't likely to happen as magazines are shutting down left and right in the last few years, as was to be expected.

Without much published work, since I apparently can't be a freelancer due to the costs, what hope is there for me? None I imagine. Do I just write for free and hope that's enough to get noticed by people with actual job offers? I did that for quite a long time and it doesn't seem to hold much ground with employers. Should I just send my articles for free to certain popular outlets that would otherwise buy them in hopes they accept them so that I have real published work even if I'm not paid for it? I feel clueless and helpless about fighting this stumbling block I have encountered...

Is anyone else here from Greece and can enlighten me on the issue? Perhaps I have a few things wrong? Maybe at least from other European countries that I can take advantage of their rules somehow, since Greece is also in the European Union? Perhaps if you already are insured out of your full-time job you don't have to also insure yourself as a "business" or something like that? Should I just look for "under the table" deals as usual and ignore this set back? Is this a widespread issue or not, because I'm thinking any place properly organised will have the same requirements. Is this a false assumption?

I hate bureaucracy always sticking it to the little guy. Why not just let me have a little extra income and dreams and hopes without being bothered for once? What are your thoughts?

[Brian Rowe]

I can't give you any advice relating to Greece, or any of Europe for that matter, but freelancing in the U.S. is much different. Anyone can start doing it any time. Everything is fine as long as it gets claimed on taxes at the end of the year.

[Michael Walbridge]

This sounds crazy. Sounds like Greece's economy is even worse than it is in some other places?

That said, I'm guessing that this does two things in your country:

1. Greatly reduces the number of writers who can make a living, or even try
2. Increases the number who do it under the table, as you mentioned

As Brian said, in the U.S. you do it when you turn in your taxes. Writing a book or doing a large project can be more complex (as far as payment and taxes go), but in the U.S. you say "Hey, I'll write this", and then the person (ideally) says "Hey, here's a check". If the company is reputable or large they have you fill out a small form so the government can't blame them if you don't include it on your taxes but that's it. Really simple.

That really is difficult. Sorry to hear your country hates you : (

[Alexander]

I've been reading and the issue is so widespread even magazines first try to sign you up as a freelancer and if you're lucky they fully hire you after a year... or three... while you pay the insurance and taxes yourself when otherwise your employer does it (but the insurance they can sign you up on isn't as brutal), on top of basic wage... It seems journalists of any field here hope to land a job... At least from a basic search I did after I stumbled upon this, that's what I gather, freelancing is hell. I'm glad things are easier for you guys...

[Eugene Neubronner]

Things are straightforward in Singapore. If you don't earn X amt in a year, you don't have to file for taxes (i,e. you do it "invisibly") and since I don't earn enough to hit that amount (not by a looonnnngggg shot) no worries for me.

I'm guessing there are more people doing it undercover than you might know of though, with such draconian laws in place.

[Andrew Hayward]

Yeah, that sounds ludicrous. As mentioned in others' replies, we just handle it while doing taxes. Freelancers get boned on Social Security dues, but are able to deduct a very wide variety of expenses/purchases. It almost evens out.

[Nathan Meunier]

Yeah, the man sticks it to U.S. freelancers, but apparently not as heartily as those abroad. When you sit down and calculate the extra we have to pay out our total yearly earnings, its more than a tad depressing. However, it does sort of balance out in the end. Being able to write off many things under the sun as business expenses is great though.

[Pat 'iTZKooPA' Mulhern]

Wow that sounds absolutely awful. I live in the US, we get stuck with taxes more than anything. Some states require business license, some cities require one on top of that, but it is all dependent on where you work and how they treat freelancers. In the end it works out, but it sounds like getting off the ground is going to be difficult for you.

I would also think that many people in your position do it under the sly some how. Try to find a cool accountant and ask them how it is possible.

[Mitchell Dyer]

I'm Canadian, and I've been approached about this. Thankfully, I don't actually have to do it. It's an international thing that most foreigners freelancing for a non-"local" outlet need to do. Somehow I dodged it as a canuck. Yay!

[Timothy J Seppala]

One of the few perks of being Canadian ;)

[Pat 'iTZKooPA' Mulhern]

Don't count out the ability to go seal clubbing. Made me LMFAO in Overlord.