>Recessions are a time when many workers consider going into business for themselves. Some of the most successful businesses — Burger King, FedEx and Microsoft to name a few— were formed by individuals looking for the type of freedom provided by self-employment. Self-employment can translate into many financial and psychological rewards:
Flexibility: Setting your own hours and work space is one advantage. There is no time card to punch or tiny cubicle to report to everyday. Vacation or sick time is at your discretion. Gone are the days of a dress shirt and tie. If the business requires no “face time” with customers, casual dress or even pajamas are acceptable. Lastly, entrepreneurs have the ability to directly
determine the value of their work or products, by setting their own fees, rates and prices.
Creativity: As your own boss, you don’t have to answer to a supervisor or colleagues’ opinions on creative matters. Some of the most creative ideas were born when people no longer felt restricted or stifled by traditional corporate environments.
Tax benefits: You get to deduct half of your self-employment taxes from your net income. Essentially, the IRS treats the self-employment tax as a business expense and allows you to deduct it accordingly. Additionally, you only incur self-employment tax on your net business income, or what’s left over after you subtract your business expenses.
The sky’s the limit: The self-employed essentially have an unlimited earning potential rather than a set salary. It’s all dependent on the work they put in. In short, the businesses’ profit goes straight in your wallet.
Job security: Self-employment limits the fear of layoffs, downsizing or firing. Instead of worrying about the status of your job, you can focus more on getting the job done.
In short, self-employment has its perks. With that being said, it’s no surprise the number of self-employed, “free agents” in the U.S. is on the rise.
Tags: small business