Freelancing isn’t for everyone and it isn’t for every stage of life. Market shifts, changes in your lifestyle or a better understanding of your work preferences are all good reasons to close your freelance business and enter the job market. If, for whatever reason, you have decided to leave freelancing, it’s important to go about it the right way.
Interviewing for a job
When you interview for a job, you will likely be asked why you decided to leave the freelance world and seek employment. This question may reflect hesitation on the part of your potential employer, who is worried that you don’t like authority or that you’re compromising on a job when you really want to freelance.
It’s OK to tell an interviewer that you loved the work you were doing but didn’t like running a business. Don’t worry about sounding like a failure. This answer makes it clear that you are an employee at heart and that you are choosing a job because it’s what’s best for you. However, when asked why you want this job, don’t say you’re looking for a steady paycheck. Instead, emphasize what excites you about the work itself.
For more tips on getting a job in Israel, see The Hiring Process in Israel and How to Get a Job in Israel.
Closing your business
Once you get a job as an employee, you need to close your business. This is important so you don’t incur expenses for a business that’s no longer operating. Start by filling out Form 18 for the VAT office, or, in the case of an Osek Patur, an online Hatzharat Osek Patur. Form 18 must be sent to your local VAT office and must include information about any equipment, inventory or property you still have in your possession.
Next, fill out Form 6101 for Bituach Leumi and 2550 for the Tax Authority. These can be done online, although it is prudent to go to the Tax Authority in person to ensure that everything was reported and closed properly.
If you have a business bank account, shut it down so you aren’t paying extra fees on an account you don’t need. Keep records and receipts for seven years, in case you are audited by the Tax authority.
Adjusting to your new job
Even if you are very sure that you want to work as an employee, there will be a period of adjustment. You have to get used to having a boss and possibly an entire office hierarchy. You’ll have to adjust to asking for time off instead of just taking it when you feel like it. Your salary will likely look smaller, since freelancers have to make about 1.4 times more than employees to take home the same amount. Give it some time and focus on the advantages of having less responsibility, a steady paycheck and a new challenge.