Self Employment
Becoming self employed is a decision more and more people are making
these days. With companies reducing staff and cutting costs,
it's becoming more attractive to work for yourself. By owning
your own business you determine how much you work, how the company's
money is spent, and even how much you make. On the flip side,
there are many new responsibilities that, since you are now the
employer and/or the employee, you now own. Before you decide
to dump your job and strike out on your own, be sure that you're
aware of both the benefits, and downsides of doing so.
Here are some things you should consider. We'll leave it up to you to determine whether they are "pros" or "cons".
If you are:
| an Employee | Self Employed |
| Your company handles finances: paycheck, retirement plan, 401K, taxes, etc |
You handle the finances and make sure the bills get paid. |
| The success of the company depends on the efforts of multiple people. | You alone determine the success of your company. |
| Your salary or salary guidelines are set by the company. | YOU set your salary. |
| Other people may handle administrative tasks. | You handle EVERYTHING. |
| The company handles advertising and promoting the product or service. | It's up to you to advertise and promote your business. |
| The company ensures labor laws are followed and that the company operates within legal boundaries. | You are responsible for knowing what is legal/illegal for your company. |
| The company provides equipment and other materials necessary for you to do your job. | You pay for and provide your own equipment. |
| The company trains and educates you so that you can do your job. | You are responsible for learning and becoming proficient at the skills necessary to run your business. |
This is by no means an exhaustive list of all the factors related to being employed, vs. being in business for yourself, but it should be enough to help you determine whether you're ready and willing to go into business for yourself.
If, after considering all these things, you still believe it's in your best interest to strike out on your own, here are some companies and sites that can help you own and operate your own business.
- The Delaware Company
- Incorporate in Delaware. Protect your business assets! Guaranteed lowest price or they'll refund the service fee.
- Internal Revenue Service
- A one-stop IRS resource for small businesss and the self employed. There are online classrooms with workshops on a variety of topics for small business owners. Information on recognizing and avoiding tax scams. Mailing list with information about small business and self-employed outreach products and programs.... and of course, exhaustive resources for handling taxes for your business.
- National Association for the Self-Employed
- The NASE was founded in 1981 by a group of small-business owners in search of a structure of day-to-day support, benefits and consolidated buying power that traditionally had been available only to large corporations. Today, the NASE represents hundreds of thousands of entrepreneurs and micro-businesses, and is the largest non-profit, non-partisan association of its kind in the United States. There are fees for joining this association.
- Social Security and Self Employment
- This is the Social Security Online site. This publication deals with Social Security and it's relation to the self employed.
- US Department of Labor Self Employment Assistance
- Self-Employment Assistance offers dislocated workers the opportunity for early re-employment. The program is designed to encourage and enable unemployed workers to create their own jobs by starting their own small businesses. Under these programs, States can pay a self-employed allowance, instead of regular unemployment insurance benefits, to help unemployed workers while they are establishing businesses and becoming self-employed. Participants receive weekly allowances while they are getting their businesses off the ground.
