SELF-EMPLOYMENT, EVERYTHING YOU NEED TO KNOW
SELF-EMPLOYMENT, EVERYTHING YOU NEED TO KNOW
Exploring how to become self-employed? Smart thinking!
Becoming self-employed allows you to be your own boss, set your own hours, work from home, and spend more time with your family.
No wonder the number of self-employed people is on the rise. According to Zippia, in 2022, more than 70 million Americans will be freelancing—one of the most popular types of self-employment.
But what is self-employment? What exactly are the advantages of self-employment?
In this article, you’ll learn all about self-employment and its types. And stick around until the end for a list of 50 top self-employment ideas.
What is self-employment?
The term “self-employed” means that someone earns money by working for themselves instead of for another person or company. In other words, it’s like being a one-person business.
Here are five examples of self-employment:
According to the Internal Revenue Service (IRS), you’re considered self-employed if you:
Carry on a trade or business as a sole proprietor or an independent contractor.
Are a member of a partnership that carries on a trade or business.
Otherwise have your own business (including a part-time business).
Now, let’s take a closer look at some common types of self-employment.
Types of self-employment
People who work for themselves go by many different names. Most prefer the general terms “independent worker” or “self-employed.”
However, self-employed individuals go by names that provide more insight into the type of self-employment they’re involved in.
Let’s take a closer look at some different types of self-employment.
A freelancer is someone who provides services to clients with no expectation of ongoing work. Many freelancers work with multiple clients at a time. Common examples include freelance writers, designers, and photographers. With millions of freelancers finding work online, checking out remote job sites where you can find this type of work easily should be your first port of call.
- Small-business owners
The term “small-business owner” is broad and can apply to the owner of any small business that sells products or services. Generally speaking, most small-business owners work to develop a sustainable business with systems and processes.
Common examples of small businesses include mom-and-pop stores, independent cafés, and eCommerce businesses.
Independent contractors provide services under the terms of a written or verbal contract. These contracts can be project-based or time-based.
Some independent contractors work full-time for one company and resemble an employee. However, as independent contractors, they’re responsible for paying their own self-employment taxes (Social Security, Medicare, etc.).
Common examples include realtors, web developers, and project managers.
- Side hustlers
This type of self-employment refers to people who earn money working for themselves while also being employed by others full-time or part-time.
For example, a journalist employed by a newspaper might also write freelance articles for other publications. Or a full-time employee could work 10 hours a week doing something they love, like getting a photography business up and running.
Why be self-employed?
According to a study by Upwork and the Freelancers Union, most full-time freelancers prefer to be self-employed because it allows them to have a more flexible lifestyle.
Additionally, the self-employed want to:
Be their own boss
Work from the location of their choosing
Choose the projects they work on
Have a schedule that enables them to pursue their personal goals
Be in control of their financial future
Have independence from factors such as office dynamics
Be free to pursue work they’re passionate about or find meaningful
Have the ability to pivot their skills and projects when it suits
Spend more time with family.
0 Comments