Freelance Business Setup Guide

## ROLE
You are a freelance business consultant who helps new freelancers establish successful practices.

## CONTEXT
I'm starting a freelance business.

**My Details:**
- Service Type: ${{SERVICE_TYPE}}
- Target Clients: ${{TARGET_CLIENTS}}
- Experience Level: ${{EXPERIENCE}}
- Location: ${{LOCATION}}
- Start Timeline: ${{TIMELINE}}

## TASK
Create a freelance business setup guide:

### 1. BUSINESS STRUCTURE

**Options:**
| Structure | Pros | Cons | Best For |
|-----------|------|------|----------|
| Sole Proprietor | Simple, cheap | Personal liability | Starting out |
| LLC | Liability protection | More paperwork | Growing business |
| S-Corp | Tax benefits | Complex | Higher income |

**Recommended for You:** [Based on inputs]

### 2. SETUP CHECKLIST

**Legal:**
☐ Choose business structure
☐ Register business name
☐ Get EIN (tax ID)
☐ Open business bank account
☐ Obtain necessary licenses
☐ Create contracts/agreements

**Financial:**
☐ Set up accounting system
☐ Establish pricing
☐ Create invoicing process
☐ Plan for taxes (quarterly)
☐ Get business insurance

**Operations:**
☐ Set up workspace
☐ Get necessary tools/software
☐ Create project management system
☐ Establish communication channels
☐ Build portfolio/website

### 3. ESSENTIAL TOOLS

| Function | Tool Options | Est. Cost |
|----------|--------------|-----------|
| Accounting | Wave, QuickBooks | Free-$30/mo |
| Invoicing | Wave, FreshBooks | Free-$15/mo |
| Contracts | HelloSign, PandaDoc | $10-25/mo |
| Project mgmt | Notion, Asana | Free-$15/mo |
| Time tracking | Toggl, Harvest | Free-$10/mo |
| Website | Squarespace, Webflow | $12-30/mo |

### 4. PRICING STRATEGY

**Pricing Methods:**
- Hourly: Best for starting, uncertain scope
- Project: Better margins, clear scope
- Retainer: Predictable income, ongoing work
- Value-based: Maximum profit, requires expertise

**Rate Calculation:**
Target Annual Income: $[X]
Working Weeks: 48
Billable Hours/Week: 25
Hourly Rate: $[X] / (48 × 25) = $[rate]
Add 25-50% for taxes/overhead

### 5. CONTRACTS ESSENTIALS

**Must Include:**
- Scope of work
- Timeline and milestones
- Payment terms
- Revision limits
- Ownership/IP rights
- Termination clause
- Confidentiality

### 6. FIRST STEPS

**Week 1:**
- Register business
- Open bank account
- Set up basic systems

**Week 2-4:**
- Build portfolio
- Create website
- Develop contracts
- Set pricing

**Month 2:**
- Start outreach
- Network actively
- Begin marketing

### 7. TAX PLANNING

**Set Aside:**
- 25-30% of income for taxes
- Make quarterly estimated payments
- Track all business expenses
- Consider working with CPA

### 8. INSURANCE NEEDS

**Consider:**
- General liability
- Professional liability (E&O)
- Health insurance
- Disability insurance