Business Advice, Entrepreneur

How to Become Self Employed

Business Advice | 6 November 2022 | 1 year ago

Becoming self employed has a lot of benefits, but it’s not a decision to make lightly. You should weigh up the pros and cons of becoming self employed, and decide if it’s a way of working that suits you. Below, we have taken a look at how to become self employed and the benefits of doing so.

How to Become Self Employed?

Once you have decided on becoming self employed, you need to register yourself as such. You can do this by registering as a sole trader, which means that you own your business as an individual and you are able to keep all of the profits after paying tax. You will need to think of a business name, or you can use your own name, and you will need to familiarise yourself with self assessment tax returns. As a sole trader, you are solely responsible for the business.

You could also choose to register yourself as a limited company, which is a business that’s owned by multiple people in the form of shares. Setting yourself up as a sole trader or limited company can be done online, and the process is relatively straightforward.

Should I Become Self Employed?

There are a lot of reasons to become self employed, and it’s a route a growing number of people are taking. Instead of working for the benefit of a business and having an employer dictate your career, you could opt to handle things yourself by becoming self employed.

Before you decide if becoming self employed is the right decision for you, you need to weigh up the pros and cons. There are a lot of advantages that come with being a self employed worker, but there are also disadvantages to consider.

How to Decide if Becoming Self Employed is the Right Decision

What are the Benefits of Being Self Employed

Being self employed gives you a lot of creative freedom; you are free to choose who you work with, which projects you take on and the type of work you want to do. You also have the freedom to dictate your own working hours and work remotely.

It’s possible to earn a lot of money when you are self employed, as there is no upper limit of your earning potential. If you want to increase your income, you can take on more work. If you want to charge more for your services, you can. You don’t have to rely on yearly pay reviews or promotions to boost your earnings.

What are the Negatives of Being Self Employed

There is a lot of pressure when you are self employed, pressure to find a steady supply of work and pressure to make your business venture work. There is no one else to fall back on, and no one to ease the burden should you need it.

One of the main negatives of being self employed is that you aren’t entitled to employee benefits such as sick pay and holiday pay, which can make taking time off work more costly. There is also a lot less structure when you are self employed, which can hinder productivity if you are someone who is easily distracted. Plus, without an employer dictating your working hours, being self employed often leads to longer working hours and fewer breaks.

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