I'm not sure if this is the place to post this but here goes.

I've seen a few opinions on this but just wondering what you think. What exactly is a freelancer as opposed to say an entrepreneur or small business owner? Or is there any difference?

Thanks for your opinion.

Mattie

Hi Mattie Interesting question!
I actually think you can be all three at the same time. In my mind/understanding:
A business owner is just that - someone who owns a business.
An entrepreneur is someone who is working on setting up a new business and is responsible for whatever risks go along with the new venture.
And a freelancer is someone who works for clients without a long term commitment - ie - a freelance web designer will design websites for many clients over time, not just exclusively for one client.

The best part about all three is that you get to decide who you work with and what kind of projects/business you take on

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Don't quote me! My understanding is that a freelancer is an individual, whereas an entrepreneur and a small business are, well, a business

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Lily Chambers, The Virtual Office Goddess, LLC
Author "How to Do Your Own Small Business Bookkeeping"

Boy Tess! Beat me to it again

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Lily Chambers, The Virtual Office Goddess, LLC
Author "How to Do Your Own Small Business Bookkeeping"

But I think you can be an entrepreneurial freelancer taking the same web design example - let's say I own a little web design company, and I contract myself out to many clients over time, not just one - then I'm technically both a business and a freelancer...

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Thanks Lily and Tess. So .... a virtual assistant can be both a freelancer and an entrepreneurial business owner?

Mattie

I do believe so - and a quick check of Wikipedia agrees - although in fairness to the complicated gibberish that is legalese it's entirely possible that the government (or a courtroom) would disagree with me...and I'm not sure where we'd go to confirm the 'legal' definitions of the three.

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I think for the sake of legal simplicity I would establish a business rather than being a freelancer. In the long run, I believe that most small business people prefer to work with other businesses. Just my opinion, of course

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Lily Chambers, The Virtual Office Goddess, LLC
Author "How to Do Your Own Small Business Bookkeeping"

OK - had to check it out...this is at least one answer I found -

"Freelance refers to a type of job where the worker is self-employed. A freelance worker works for themselves and bids for temporary jobs and projects..." source link

Click the link for a really LONG definition....but here's some more on what the gov't looks for to determine freelance status:

"ELEMENTS OF THE IRS TEST

The IRS applies a 20-part test in order to determine whether a certain worker should be classified as an employee or an independent contractor. The main issue underpinning the test is who sets the work rules: employees must follow rules set by their bosses, while independent contractors set their own rules. The hours during which a job is performed is one determination of work rules. For example, if the employer dictates an individual's work hours or pays an individual by the hour rather than by the job, that individual is likely to be considered an employee rather than an independent contractor. Likewise, if the employer requires that an individual work full-time or not be employed by another company simultaneously, that individual would appear to be an employee. On the other hand, an individual who sets her own hours, receives payment by the job, and divides her time between work for several different employers would probably be classified as an independent contractor."

I hope that helps

I think business owner and entrepreneur are more obvious...

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Originally Posted by Office Goddess

I think for the sake of legal simplicity I would establish a business rather than being a freelancer. In the long run, I believe that most small business people prefer to work with other businesses. Just my opinion, of course

It's really just semantics but in my opinion I don't think a client makes a differentiation between the two when selecting a VA, at least not in my experience.
I refer to myself as all three at various times and all three apply quite literally.

If the question is being asked in terms of tax issues/employee vs. contractor then the quote above about IRS standards should clarify.

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