If you've been reading this blog for any length of time you probably know that I believe strongly in the power of doing side work as a software developer. While it is possible to incur some costs, it is one of very few fields in the world where you have an unlimited supply of all the raw material you can ever need for any job — your thoughts and your actions.
We can create something from nothing, with only an investment in time and the power of our own minds. Think about that for a moment. It's a powerful concept. If you use it as proper motivation, you can change life for you and your family.
Part of taking opportunities that come along is being prepared for them. This is the primary reason why I have kept a business entity running over the years as a software developer.
Opportunity Meets Preparation
It has been said that luck is what you get when opportunity meets preparation. This couldn't be more true than in the world of software side hustles. When I finally decided to take the leap and create my own business entity, I could say yes when opportunities came along. I was ready and I had what I needed to move with confidence.
I had drafted up sample proposals and contracts using templates from sites like LegalZoom. I had registered a domain and maintained an email address. I had invoice templates ready to go. I could say that, to a large extent, I was ready to present a polished, professional front to potential clients.
Self-Fulfilling Prophecies
I'm a big believer in self-fulfilling prophecies. We become what we think about, and the outlook and attitude that each of us carries through life determines how far we'll go to an extent that most people just don't appreciate or understand.
It is no different in the world of software and business. For me, having a business entity ready to go has given me the faith and confidence to actively seek out opportunities rather than just waiting for them to come along.
Enhanced Privacy
Another big reason why I enjoy having a business entity is that I can get a Tax ID number separate from my own personal SSN and use that in my business transactions.
Without this in place I'm basically handing out my own personal information to a company that I may not know very well when it comes down to it.
I like to play it safe in these scenarios, and so this has given me the confidence to take on multiple engagements without worry.
The Power of Irrational Fear
Many people have friends or co-workers who have a negative attitude about this kind of thing. They'll tell you that you're going to get sued or that a client won't pay you.
Don't listen to these kinds of people. They don't get to decide how your journey is going to go. Everybody has their own path to walk, and a big part of it is having the faith to keep going when you are discouraged.
Don't give these people your time, stay focused on your goals and don't let fear drive your decisions.
The Process is Simple and Safe
It's very easy to register a business entity in any US state. You can do everything online these days and generally be official within a couple days at the most (typically much faster depending on the state).
There's Just One Catch
The one thing that you have to keep in mind is that to maintain a business entity the business has to actually be doing business. The length of time can vary but in most states you have to actually have gotten paid by somebody in order to be considered a business.
I think this helps with motivation as well. I may not always be generating significant mmoney, but I've kept enough of a steady trickle over the years that I have been able to maintain a business entity without issue.
What Are You Waiting For?
So? Are you ready to create your own business entity? Obviously I'm biased but I think you should try it. If you're on the fence, or even if you've only casually thought about it, you don't have much to lose and you have lot to gain!