How Self Employment Is Good or Bad For You? Must Check

Advantages of Self-Employment

Independence, control and freedom from routine-

Companies or individuals you work for are your clients, not your employers. As clients, they can state what results are expected from you, but they do not direct your work. Of course, you want to satisfy your clients if you want to receive more work, favorable referrals or better rates. But you are your own boss- you decide when, where and how to work to get the job done.

Financial rewards-

It may be true that business become very profitable but in actual many Companies are agreed to pay extra to independent contractors because they don't have the expensive, long-term commitments that they do with permanent employees, such as benefits, unemployment compensation and pensions. Independent contractors may also deduct business expenses from their taxes, which may increase their net pay. Many successful businesses in Canada are run by newcomers or immigrants.

Disadvantages of Self-Employment

• Less security-

It will be your duty just to make sure that you always have work to do and This means you may sometimes be without work and therefore without income.

• Fewer free benefits-

You will have to pay for your own vacation time, fund your own retirement plans, and buy your own dental, disability and life insurance.

• Paying taxes-

As a self-employed person, you are solely responsible for doing all the paperwork and paying your taxes on time. If you are an independent service provider or a freelancer, you will be required to pay estimated taxes quarterly to pay your any sort of Pension Plan contributions and income tax.

Reasons for becoming self-employed;

It's really important for one and all to have a clear reason for taking the decision to become or be a self-employed, and a vision of what you want to achieve. Begin by asking yourself the following questions:

• You should know exactly what you are going to do?
• Know, that does it use your strongest skills?
• Evaluate that, Can you make enough money doing it?
• Do you know where you want to be in five years' time? Will self-employment help you get there?

Mostly, People instantly go for taking up an option to become self-employed for a variety of reasons, but simply disliking your current job, or perhaps not having one at all, is not necessarily the best reason. Thinking about the questions above will help you evaluate the idea of self-employment from a realistic perspective.

Source : articlesbase.com