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Consultants who work for themselves are not employees. For tax purposes, they usually qualify as an independent contractor . This means that the client company who hires them to perform work does not have to pay for their benefits, unemployment or training.
For the vast majority of consultants, using your own name as the consulting business name works perfectly. You can use your last name or a part of your name and append 'consulting,' 'associates,' 'partners' (if there's more than one person), or 'strategy. ' Don't overthink your consulting firm name.
Moreover, being a 'consultant' is not a protected professional title like most other professions, and, as such, anyone can title themselves strategy, management, business, finance, HR or IT consultant.
The employment status for freelancers can differ completely from consultants. Freelancers often work as independent contractors or are self-employed professionals, whereas consultants can work as employees for private companies and even in the government and nonprofit sectors.
Typically, you include Schedule C with your tax return to report the self-employed income?along with the deductions for your business expenses. And if your net earnings from self-employment exceed $400, you will have to pay self-employment tax (for Social Security and Medicare), which is figured on Schedule SE.