What are the benefits and drawbacks of being self-employed?
There can be many advantages to being self-employed: You are your own boss. You may be paid more than employees. No federal or state tax is withheld from your pay. You can take increased business deductions. Despite the advantages, however, being self-employed is no bed of roses. Here are some of the major drawbacks. You have no job security. You might not get paid. You must pay self-employment taxes. You may be personally liable for business debts. You have no employer-provided benefits. You have no unemployment insurance benefits. You have no employer-provided workers’ compensation. You have few labor law protections. For more information, see Pros and Cons of the Independent Contractor’s Life.
