What is Self-Employment?
What does the term Self-Employment Mean?
1. Self-employment is the state of working for oneself rather than an employer.
2. Self-employment refers to working for oneself rather than working for a specific employer who pays them a consistent salary or wage. Self-employed individuals often act as independent contractors by collaborating with other businesses. Self-employed people earn a living by working for themselves, not as employees of someone else or as owners (shareholders) of a corporation.
IRS(Internal Revenue Service) Definition:
The IRS says that someone is self-employed if they meet one of these conditions:
- Someone who carries on a trade or business as a sole proprietor or independent contractor,
- A member of a partnership that carries on a trade or business, or
- Someone who is otherwise in business for themselves, including part-time business.
What Are the Advantages and Disadvantages of self-Employments?
In other words, Why would anyone want to be self-employed, and if not, why not?
Advantages: -
You’re in control:
Owning your own business provides you with full control over every aspect of your company and allows you to structure your work environment the way you want it
You can follow Your Passion:
Whether you’re starting your own company or freelancing, self-employment allows you to engage in work that interests you. You have the opportunity to turn your passion, hobby, and strengths into a business and make money doing something that you love.
You get to live a varied life:
Honestly, I don’t think I could ever go back to punching the clock for an employer. Arriving and leaving at the same time each day. Knowing exactly what each day will hold. Is that in any way exciting or inspiring? Being self-employed is often like being on a roller coaster. No day is ever the same. You’ll get used to dealing with orders, accounts, sales, complaints, celebrations, and bereavements all in the course of your working days.
You have creative control:
The freedom to be creative that comes from working for yourself eliminates the limitations that can accompany working for someone else
.
You get the potential financial reward:
Your potential earnings will ultimately depend on your own actions and initiative when you become self-employed.
Disadvantages: -
Less security:
You will have to ensure that you always have work to do. Yet, you may occasionally go without work and without income.
Zero Employee Benefits:
It will be your responsibility to pay for your vacation time, fund your retirement plans, and purchase your own dental, disability, and life insurance.
Stress:
Success or failure is entirely up to you, which can add to your anxiety since your income is unpredictable.
Patience:
The progress can be slow, and you will need to be persistent and determined to succeed.
