 TITLE: How Are Freelancers Taxed? CONTENT: Are You a Freelancer?\n---------------------\nAt the start of a freelancing journey, many people don't realize that the IRS typically views freelancers as self-employed business owners. The IRS generally considers you to be self-employed if you:\n*   **Do business as a sole proprietor or an independent contractor.** A sole proprietor owns a business by himself or herself. Freelancers who are sole proprietors typically choose to work for one or many different clients; in fields including web development, writing and graphic design. An independent contractor is typically considered a temporary employee and may go through an agency to get clients. Independent contractors can include doctors, dentists and lawyers.\n*   **Belong to a business partnership.** The IRS defines a partnership as two or more people who make contributions to a business, such as labor or money, and share in the profits and losses. Each partner is considered a self-employed person, not an employee. An example of a partnership is a law firm.\n*   **Work for yourself in a part-time capacity.** For example, you might work full time as an engineer but own an electronics repair shop on the side. Or you could be a gig worker, such as a rideshare driver, a handyman, a tutor or a virtual assistant. END