Being self-employed has some benefits and disadvantages compared to working as an employee of a company. As a self-employed person, one can set their working hours and schedule as long as client deliverables are fulfilled on time. However, being self-employed is not easy because of the lack of income stability that comes with being self-employed. There are bills to pay, but there is less predictability of earning any income in the future. In short, working as a self-employed person is not a fit for everyone.
Self-employment brings many benefits, and they are not only financial; many people love the sense of being their own boss.
- The ability to break free from a rigid 9-5 working schedule and design their working schedule around their priorities.
- Self-employment can be an excellent option for those who want to control how they integrate their family and work life in their day and night.
- Self-employment can also allow you to work from home and manage your home.
- Ability to craft their dream job so they can earn money while doing what they are passionate about.
- Complete control of how much they earn from their working hours.
While there is a lot of freedom as an entrepreneur: working from home, picking and choosing their clients, and getting paid to do something they love, there are also many challenges.
- Working hours tend to be irregular
- Lack of predictable income
- Be constantly promoting their value proposition to attract new clients
- Lack of company health insurance or contribution to the retirement fund
- Lack of paid vacation days
- Lack of paid sick days
For those looking to succeed by working from home, it is essential to consider a proper workspace. Ideally, this space will have a working desk and chair dedicated for working only. At a minimum, having a small area in the corner of the room might work just as a temporary measure. Whatever the available space, make sure to have enough room to move around freely.
Whether someone is working from home or in a shared office space, privacy is crucial to ensure productivity. While most workspaces are designed to reduce distractions, it is essential to maintain some level of privacy. This can be achieved by dedicating a closed room for working only. Alternatively, place some small furniture, decor, and storage space to create a clear separation of the working area from the rest of the room. Finally, leave some open space to stretch out after sitting for long periods.
Consider finding a working space closer to windows to take natural light into the room. With proper artificial lighting plus natural light, the room should be lighted without casting shadows to help improve the level of engagement and productivity. The right balance of natural and artificial lighting is essential for a productive working environment.
If working from home, consider designating one area of the house as the home office while the rest of your house is the relaxation zone. The relaxation zone becomes the place to relax and unwind, with a soft lamp or candle and a reclining chair. Just make sure to keep the relaxation area organized and free from clutter to help destress while taking time away from the working area.
There are more laws to consider for self-employed workers than working as an employee. These laws are necessary to protect themselves from unscrupulous customers who may decide to sue them in court and ensure that they are on the right side of the laws. Knowing the laws might not be the first thing to mind for entrepreneurs, but it is a necessary foundation for unexpected events that become part of the entrepreneurship journey as a self-employed person.
Knowing the different types of taxes, how they work, and how to file them across all other states in the United States is no small feat. Unfortunately, the state laws on taxes are not identical across the country. In almost all cases, an entrepreneur would want to consult with a business attorney in Southlake to be prepared when they start accepting payments from customers.
For self-employed entrepreneurs who are also the breadwinner of their families, it is vital to consider the impact of self-employment on their family’s future. For example, consider the plan to transfer personal and company assets to their children after they have passed away. The reason entrepreneurs should consider consulting with an estate planning attorney and probate attorney in Southlake is to determine how the personal finances and company assets are to be managed after a person’s life has ended.
It is essential to understand the benefits of POA prepared for a self-employed entrepreneur. This document grants someone the power to make legal and financial decisions for the entrepreneur if they cannot make them for themselves. It is not required that the person appointed be related by blood to the grantor. The scope of the POA can be general or customized, and it can be changed or canceled at the request of the grantor. This legal-binding arrangement is best prepared by a licensed lawyer who provides the will and trust services in Southlake to ensure the document is valid and accurate as the grantor wishes.
It is helpful to know the different types of company structures when considering company structures. Limited Liability Companies are usually the popular choice for many small entrepreneurs. Most self-employed entrepreneurs chose this structure because this type of company will have all the legal protection of a corporation but with less paperwork and tax payments that come with it. When choosing a suitable company structure, keep in mind that the company structure will have different tax-related implications. These details are best discussed with a licensed lawyer specializing in LLC formation Southlake services.
Being self-employed is good because of the ability to control the entrepreneur’s income, the ability to work from home, work flexible hours, and non-fixed schedules. There are also some challenges like entrepreneurs need to figure out their own taxes, no paid leave, no job security, and they need to motivate self-motivate. Entrepreneurship is hard work, but with the right mindset, one can go far in their entrepreneurship journey.