Say My (Business?) Name: Choosing Between a Personal vs a Business Brand as a Freelancer
Jul 05, 2024
4 mins
When starting your own freelance business, you've got lots of decisions to make, many of which ultimately shape your professional journey. One of those is deciding whether you want to operate under your own name or pick a business name.
While there's no right or wrong answer here, the choice you make impacts everything, from how you're perceived to growing your business in the future. So, to make your decision between a personal vs company brand easier, here are the pros and cons of each choice.
The upsides of operating under your own name
The most obvious benefits of freelancing under your own name? Simplicity and cost-effectiveness. Since you're not registering a business name or creating a business entity, you're minimizing your paperwork and saving on registration fees.
Operating under your personal name also lets you take advantage of your personal reputation. If you're already a recognized professional in your field, it makes sense to capitalize on your own track record.
Finally, if you're a freelancer, using your own name instead of a business name comes with one more benefit: personal connections. Unlike a business name, your personal name is inextricably linked to you. As a result, clients feel like they're dealing with a real person, not just a business entity, which can help in building trust faster.
The downsides of operating under your own name
When you're operating under your own name, your name becomes your brand. If you're not comfortable with blurring the lines between personal and professional, you might want to choose a business name instead.
Another downside to using your personal name is how you're perceived by clients. While some will love the personal touch, others will inevitably see you as less credible, especially when you're working with larger companies.
What's more, if you're planning on growing your business beyond a one-person show, using your personal name can be limiting. When you're operating under your own name, your business success is tied directly to you, not a company.
So, if you ever want to grow and expand, you'll eventually have to register as a company. But, since all previous success is tied to you personally, you'll end up having to build company credibility from scratch.
The upsides of operating under a business name
As opposed to freelancing under your own name, a business name makes you appear more established. If you're working with corporate clients or competing for larger projects, a business name can make you look more professional and serious.
What's more, using a business name lets you separate your brand from yourself. This gives you the freedom to create a brand personality and values that might not be as clear under a personal name.
Finally, if your long-term plan is to grow, hire other people, or sell the business one day, a business name will make that much easier. Since the business exists independently of your personal brand, there will be no blurred lines between professional and personal success.
The downsides of operating under a business name
As opposed to operating under your own name, setting up a business involves more steps. Registering a name for "doing business as" or creating a separate legal entity takes more paperwork and admin.
On top of that, if you opt for a business entity, you have to take initial and recurring costs into consideration. Besides registration fees, you have to also think about marketing expenses, as well as changes in taxation.
Last, but not least, if you've built a strong personal brand, going with a business name might negatively impact it. Building brand recognition takes time and effort, so it might not be worth it if you're already established.
So, what's it going to be?
The name you want to operate under is one of the biggest decisions you'll make when starting your freelance business. Before making a definitive choice, consider two things: your target audience and your future plans.
If you're going to be working with small clients, a personal name might resonate more. If you're aiming at larger companies, a business name makes you look more professional and credible.
Speaking of professional and credible, whichever option you go for with the name, you'll need business documents. Better Proposals comes with hundreds of templates you can tweak and start using right away.
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