Keeping track of your revenue is the first step towards reporting your income. All the cash you get from customers should be documented. You can do this by maintaining receipts, invoices, or a straightforward spreadsheet. You can appropriately declare your income to the government by keeping track of your revenue.
You must declare your income on a Schedule C form if you did not obtain a 1099 form. This form is used to declare business income, including income from freelance work. Your earnings, expenses, and any allowable deductions must all be listed on the form. The Schedule C form’s net income is subsequently transferred to your individual tax return.
In Singapore, if you work as a freelancer, you must register your company with the Accounting and Corporate Regulatory Authority (ACRA). Through the BizFile+ platform, this can be completed online. Your Unique Entity Number (UEN), which you must use for filing taxes and carrying out business operations, will be sent to you once you have registered.
Freelancing is seen as self-employment rather than employment. As a result, you are responsible for paying your own taxes and are not eligible for employee perks like paid time off or health insurance.
Even if you have a job in Singapore, you can still work for yourself. However, you must make sure that your freelance job does not contravene either the company’s policies or your employment contract. It’s also crucial to remember that you have to declare to the government any revenue you receive from freelancing.
You may be considering creating an LLC if you work as a freelancer. Even though an LLC can offer some legal protection, not all freelancers will necessarily need one. It is crucial to take into account the expense and difficulty of forming an LLC, as well as any potential advantages and disadvantages. Before making a choice, it could be advantageous to consult an attorney or an accountant.
In conclusion, keeping track of your earnings and reporting them on a Schedule C form will allow you to report freelance income without needing a 1099. In Singapore, independent contractors are required to register their businesses with ACRA and are in charge of covering their own taxes. As long as it does not violate any employment agreements or rules, freelancing is regarded as self-employment and is permissible while working. Last but not least, creating an LLC might be advantageous for some independent contractors, but it’s necessary to weigh the cost and complexity before deciding.