USA compliance for marketing freelancers

I ran multi-source web research (two broad searches plus targeted follow-ups) to collect authoritative federal and state-level sources on compliance for marketing freelancers in the U.S. I prioritized official government pages (IRS, FTC, FCC, state AG/DOJ pages), reputable legal resources, and practitioner guides to compile actionable obligations, key state variations, and practical resources.

Summary of steps taken and analysis: 1) Broad searches for “freelancer compliance,” federal rules (IRS, DOL, FTC), and state contractor tests (ABC/Common Law) to capture worker-classification risks and recent state freelancer-protection laws (e.g., CA AB5/FWPA, NY Freelance Isn’t Free, IL Freelance Worker Protection Act).

I ran multi-source web research (two broad searches plus targeted follow-ups) to collect authoritative federal and state-level sources on compliance for marketing freelancers in the U.S. I prioritized official government pages (IRS, FTC, FCC, state AG/DOJ pages), reputable legal resources, and practitioner guides to compile actionable obligations, key state variations, and practical resources.

Summary of steps taken and analysis: 1) Broad searches for “freelancer compliance,” federal rules (IRS, DOL, FTC), and state contractor tests (ABC/Common Law) to capture worker-classification risks and recent state freelancer-protection laws (e.g., CA AB5/FWPA, NY Freelance Isn’t Free, IL Freelance Worker Protection Act).

Focused searches for advertising and marketing-specific rules (FTC Endorsement Guides; CAN-SPAM) and telecom rules (TCPA) covering email, SMS and influencer disclosure obligations.

Targeted searches for tax reporting and business formation guidance (IRS self-employed guidance, 1099-NEC instructions, LLC formation resources).

Targeted searches for state privacy resources (California DOJ CCPA/CPRA regs) and SMS/TCPA implementation guidance.

Consolidated findings into an actionable compliance checklist for marketing freelancers and US business owners (LLC founders). Key findings (high-level)

- Federal tax obligations: self-employed marketing freelancers must pay estimated quarterly taxes, self-employment (Social Security/Medicare) tax, and follow IRS reporting rules (e.g., receive file Form 1099-NEC, hiring businesses must issue 1099s when required). (IRS guidance) - Worker classification: Federal (IRS/common-law) and state tests (ABC test in many states) determine whether a worker is an independent contractor or employee. Misclassification risk is material; several states have enacted stricter freelancer protections and payment/contract requirements (e.g., NY’s Freelance Isn’t Free Act, CA AB5 and state-level freelancer-protection acts). (state guides and legal summaries) - Business formation & registrations: Many freelancers form an LLC for liability protection; steps include Articles of Organization, registered agent, EIN, and state filing fees — requirements vary by state. Check state business registration and local business license pages. (LLC formation guidance) - Advertising & endorsements: FTC Endorsement Guides and related FTC materials require clear, conspicuous disclosures of material connections (sponsored posts, paid endorsements). Influencer and testimonial uses require proper disclosures. (FTC guidance) - Email & SMS marketing: CAN-SPAM governs commercial email (accurate headers, no deceptive subject lines, physical address, opt-out mechanism honored within 10 business days). TCPA regulates automated calls and SMS and generally requires prior express consent for marketing texts; many states also have “mini-TCPA” laws. (FTC & FCC/COPA/TCPA guidance) - Data privacy: California’s CCPA/CPRA and other state privacy laws (VA, CO, CT, UT) impose consumer rights and business obligations; marketing freelancers handling personal data (especially consumer data) should review state privacy rules and update privacy policies and data-handling contracts. (state DOJ and statute resources) - Contracts, IP and data handling: Use written contracts with clear scope, deliverables, payment terms, IP assignment/license clauses, confidentiality/data protection clauses, warranties and liability caps. State and municipal laws may add payment timing or written-contract requirements. Maintain records and evidence of contractor autonomy to support classification status. - Sales/use tax & nexus: Sales-tax treatment of marketing services, digital advertising, and creative services varies by state — check state revenue departments. Nexus rules (economic nexus) may create sales-tax registration obligations depending on where clients/customers are located and thresholds. (state revenue departments recommended) - Practical checklist for marketing freelancers and hiring businesses: establish written contracts; verify worker classification; register business (DBA/LLC/EIN) as appropriate; set up bookkeeping and quarterly estimated taxes; collect/record client consent for email/SMS; include FTC disclosures for endorsements; update privacy policy and data-security measures; obtain relevant insurance (professional liability, cyber liability); confirm state/local licenses; track 1099/contractor payments and file timely forms. I compiled and used the following authoritative sources during research (verbatim excerpts from the pages used):