Freelance designers understand that it is an exhilarating experience when a new customer gives you their brand, website, or even a campaign to work on. However, between the process of invoice chasing, revision-balancing, and dealing with the fact that you are attempting to maintain a stable income, you will have at some point been thinking: “Is there a better, more secure way of doing this?
The truth is yes. When you turn your creativity into a professional, established business, how your clients view you and the amount of money you make.
The following is a simple, straightforward, and feasible tool to help you move beyond freelancing and become a legitimate business owner.
1. Choose the Business Structure That Fits Your Goals
The first move you have to make to transform your creative work into a legitimate business is to select a structure. The majority of freelance designers take into account two options:
1. Sole Proprietorship
- Easiest and fastest to start
- Minimal paperwork
- But you carry full personal liability for anything that goes wrong
This structure is simple, but it offers zero protection if a client disputes a project or threatens legal action.
2. LLC (Limited Liability Company)
- Separates your personal assets from your business
- Seen as more credible and professional
- Offers flexible tax options
- Ideal for freelancers wanting protection and long-term growth
Most designers who want to build a stable, high-earning career eventually move toward an LLC because it offers a balance of simplicity and safety.
2. File Your Formation Document and Make It Official
After selecting a structure, the second thing is to register your business. When creating an LLC, the process starts with filing your formation document, also referred to as the Articles of Organization.
Here’s where you naturally place your required link:
To officially establish your business, you will need to file your state’s articles of organization, which outline essential details like your LLC name, business address, and registered agent address.
3. Complete the Essential Post-Formation Steps
Many freelancers stop at formation, but the protection only works if you finish a few more steps.
Create an Operating Agreement
Even if you are a single-member business, this document defines how your business operates. It proves you’re running an honest company, not a hobby.
Get an EIN (Employee Identification Number)
The EIN acts like your business’s Social Security number. You’ll need it for taxes, hiring contractors, or opening accounts.
Open a Business Bank Account
Separating personal and business money is one of the strongest ways to protect yourself legally and financially.
Check Local Licenses or Permits
Some states or cities require design-related businesses to register locally. It’s usually simple — but important to verify.
4. Build Systems That Make You Look (and Feel) Professional
Legal structure is only the foundation. The next step is improving how clients experience your business.
Use Contracts for Every Project
A professionally designed contract sets boundaries and prevents scope creep. Make sure your contract covers:
- Project scope
- Revision limits
- Payment terms
- Deadlines
- Ownership and usage rights
- Kill fees or cancellation terms
5. Price Your Work Strategically, Not Emotionally
Many designers undercharge because they price emotionally rather than strategically. But a real business uses systems.
Consider Project or Value-Based Pricing
Build Service Packages
For example:
- Starter Package: Logo + basic brand kit
- Growth Package: Full brand identity + social assets
- Premium Package: Branding + website + ongoing creative support
Packages make it easier for clients to choose and easier for you to scale.
7. Strengthen Your Brand and Portfolio
Formalizing your business gives you the perfect moment to upgrade your professional image.
Showcase Case Studies, Not Just Images
Clients want to see:
- The problem
- Your process
- The final solution
- The results
Final Thoughts
You can make a business out of your design skills, and it is not a complicated process, just a few steps. After you put your organization together, submit your papers, and create mechanisms that support your creative endeavors, things become simpler.