It is getting easier to start your own business given rapid technological advances, increased ability to buy your health insurance, ability to outsource your needs, growth in the sharing economy, and innovative financing choices.
Having the ability to set your own goals, make your own decisions, and carry them out can be exhilarating. You can work remotely from home in sweatpants, making the hours you want and be your own boss.
Many companies offer flex-time as a perk, and that is increasing due to the pandemic. Having your own business allows you to have maximum flexibility over your schedule and how you work. As long you have access to the internet, you can work from anywhere.
Having a better balance should reduce some of the work stresses of a traditional job. Those self-employed often say they experience greater satisfaction and a higher quality of life working for themselves for these reasons.
As a self-employed owner, you can deduct certain expenses. However, the recent 2017 Tax Cuts and Jobs Act eliminated some of those deductions. You can still deduct costs associated with your home office, use of a car for business, meals, and health insurance premiums.
As you are accountable for doing your taxes, you are also responsible for your retirement planning. You won’t be entitled to an employer match as you are now self-employed. On the positive side, you may have the ability to contribute higher tax-deferred dollars to your plan.