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Most people have been at the point where they would love to ditch the 9 to 5 routine and work for themselves, but unless you have actually been there and gone the self-employment route, it is hard to determine whether or not it will be right for you. There are a number of different benefits and drawbacks of being your own boss and here are just a few to think about before you make that final decision.
Pro and Con: You are your own boss and answer to no one but yourself. The basic idea behind this is that while you do not have someone over your shoulder making sure you get things done is the temptation to take too many days off and let yourself get behind in your work. Self-employment requires a significant amount of self-control and making sure that you know how to keep yourself on task and making money.
Con: Dealing with employees is not as fun as you might think. You not only have to make sure you stay on task, but also that your employees stay on task. And do not forget the possibility that you might have to fire someone who is not performing.
Con: Obtaining loans in your first couple of years in business can be difficult. If you are just starting out in self-employment, you may have a hard time getting a loan fo
r anything. Many large companies require you to show them two years’ worth of tax returns proving that you can repay the loan. If you have been unemployed for a time before turning to your own business, you may not be able to get a loan without a co-signer.
Pro: Health insurance you purchase for yourself and your family is tax deductible.
Con: You will have to do boring tasks having to do with overseeing your business, such as maintaining records for tax purposes, client information, and etcetera.
Pro: You get to choose who you work with and who your clients are. Everyone has had a co-worker or a client they could not stand and if you find yourself having either a client or an employee you simply cannot stand the sight of, you are not obligated, in most cases, to deal with them.
Pro: Lots of things are tax deductible. Anything you purchase related to your business is tax deductible. If you primarily do your work online, for instance, most items having to do with your work computer and its maintenance, office supplies, printers, paper, and office furniture are tax deductible. If you have a home office, a portion of your rent or house payment is also tax deductible as long as the space is used for business only.
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