Freeworld and Aquent

Hi June,

I'm a graphic designer from Los Angeles, CA and I've been a freelancer for 3 years. I had a question I was curious if you could address on your blog. I recently discovered a site through a motion graphics forum called Freeworld (http://www.hellofreeworld.com/) that claims to allow freelancers to change their work status from 1099 to W2 while enjoying the benefits of both (in other words, they claim you are still able to take business deductions). From everything I've read from you, it seems like this is some sort of scam or perhaps the found a hidden loophole? I remain skeptical, but the guy who started it is a rather respected individual in my industry. What do you think?

Frederick
Los Angeles, CA


Hi Frederick,

A little skepticism is good.

I don't know Freeworld but I do know Aquent. I assume they are similar in structure . Aquent is a reputable organization and has been around a good while. I wrote for them about 10 years ago.

If I remember correctly Aquent was started In Boston by a guy in college hiring out his fellow students who were well versed in MACs to businesses in need of people who knew what they were doing. From that Aquent grew into a multinational corporation. Aquent screens the talent -- graphic designers, ITs, etc and matches them with businesses that need that talent for a long or short period of time. Very similar to temp agencies, however, their workers -- the talent -- are in specific areas of graphic design, technology and marketing.

The talent is an employee of Aquent not of the company for which the work is done.

As an employee the talent can deduct all business expenses BUT the expenses cannot be deducted in the same place that indies deduct their expenses. So, although in theory they are deductible the expenses are always reduced and often lost completely.

Best,
June