Freelancing or consulting after a layoff
Freelancing after a layoff works best when you sell a skill you have already been paid for to people who already know your work. Start with former employers, colleagues and clients, and keep looking for a job while you build.
By Justin KullaLast updated
Getting your first clients
- Tell your network exactly what you offer and to whom.
- Offer a defined project with a fixed scope and price, not an open-ended hourly role.
- Ask former employers about contract work: many hire back laid-off staff as contractors.
- Make a one-page description of your service and two examples of results.
The business side
- Track income and set aside money for self-employment and income tax.
- Use a written agreement for every job, with scope, price, payment terms and who owns the work.
- Report freelance income to your state if you are collecting unemployment; rules for when benefits reduce vary.
- Consider a separate bank account and an accountant.
Keep your options open
Contract income can bridge a long search and sometimes turns into a full-time offer. Say on your profile that you are open to both.
Frequently asked questions
Can I freelance and collect unemployment?
In many states you can, but earnings must be reported and may reduce benefits. Check your state’s rules.
How should I price my work?
Start from what a comparable employee costs, add the extra tax and benefits you now pay, and price projects by value when you can.
Do I need an LLC?
Not to start. Many freelancers begin as sole proprietors; ask an accountant about your state.
Will it hurt my job search?
Not if you present it as current work in your field with results.
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