what is the advantage and disadvantage of self employment?

Some of the advantages are that you get to decide what you want to do, and to a certain extent when you want to do it. You can turn some jobs down if you don’t like your perspective client. You can schedule your vacation for whenever you want ( if you can afford it). You can choose the people who work with you by hiring only people who are competent and personable.

Some disadvantage are that you have to find your own health insurance. If you are sick and can’t work, there is no sick leave, and no money (unless you buy special insurance for such an occasion). Often banks and other creditors see self-employed as synonymous with unemployed an require three years of tax forms as opposed to a couple pay stubs for loans. You have to do your own advertising. Sometimes you can’t leave work at the office. If you work out of your home, to meet deadlines you often work long hours, and there’s no overtime bonus. No paid vacations. Taxes are really hard to do because you have to save every receipt and account for all transactions your business has done. If you work for someone else, it’s usually just your basic one page 1040EZ.

The advantage is being your own boss. The disadvantage is being your own boss. It really is true. Self-employment really depends on the person. What type of self-employment? Are you just working for yourself or will you have employees? You have to possess the right mind-set. You will have no one to push you. You have to motivate yourself to wake up each morning, hit goals, day after day. Yes, you’ll have freedom sometimes to set your own hours. But- realize that you’ll need additional time for paperwork. You need a business license. That license has to be renewed annually. You need to report and pay monthly sales tax if you collect sales tax. You need to report employers’ federal forms every quarter- and may have to pay monthly if the amount is greater than a set amount. You need to check into liability and insurance. Then, there are the regular tax deadlines for W-2s and your earnings report. Also, think about health insurance. The larger corporations offer the best/lowest cost health insurance. It’s a risk. Yes, it can have many rewards- but weigh all the risks first- and make sure that you got savings to tide you over.

Advantage – You get to work on your own time and your own schedule

Disadvantage- you dont get to experience meeting new people and trying new things

work when you want to–pick your own hours-

be you own boss

lack of a steady paycheck, insurance.