Pros and Cons of Self-Employment

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.

1.

You Have More Control Over Your Life

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.

2.

Flexibility

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.

3.

Improved Work/Life Balance

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.

4.

Higher Earnings Potential

Initially, you will have start-up costs to absorb on low revenues, if any sales at all. Longer-term, your outlook is more promising.

5.

Tax Deductions For Your Business

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.

6.

Retirement Planning

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.

Being on your own is a big decision to make. Talk to others, especially your family. At the very least, listen to your inner self, and the answer is there.

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