Many independent consultants and independent contractors grow their business completely unaware of how an umbrella company can work for them. Freelancers and other self-employed individuals utilize their own talents to find clients and manage the various details of their business.

One of the most difficult aspects of being a freelancer is finding health insurance. Those who are newly self-employed may never have purchased their own health insurance before, and some are taken by surprise by the high cost of keeping a family insured.

Incorporation is one of any number of ways to structure a business. These include a limited liability company, an S-corporation and a C-corporation. Each structure has benefits and drawbacks, and it is important to decide which type of corporation works best for your situation, or if it makes sense to consider other options like operating without a corporation or working through an umbrella company.

Many businesses can benefit from incorporation. The main benefit of incorporation for most businesses is that it shields the business owner from lawsuits and protects their assets in the event that the company is the target of a lawsuit.

One challenge with freelancing and independent consultant work that you may not have considered is securing business insurance. Business insurance will protect you and your business against unfortunate mistakes and mishaps. There are a number of different types of insurance coverage that you should carry as an independent consultant or independent contractor, each of them designed to protect you from a different type of happenstance or error.