The income of a self-employed person always depends upon the number of clients, working hours, and the payment agreement between him and his clients. He is not bound to earn a fixed salary. His monthly income fluctuates with his working hours. However, a self- employed person is always on the verge of unemployment. In case, he may not get a client for a week so he is forced to spend his weekend with an empty pocket.
It has been estimated in America, the self-employed people are 44 years plus mostly. Those employed in firms are between 24-44 years and account for 42 percent of the population and the people who are self-employed are 44 and older and account for 54.5 percent of the total population. It is a clear idea that the motivation for self-empowerment is hard to determine. Motivation comes from observation and experience.
Are business owners, independent contractors, and sole proprietors, self-employed?
By the definition of self-employment, a person working for him is self-employed and gets self-empowered. So the business owners, sole proprietors, and individual contractors are all self-employed owners. Owners of the firms hire employees for them so the owners are self-employed while workers are employees who work for them and earn wages. A sole proprietor is a person who runs his business solely.
The independent contractors are those who work on a contract base. They contract with the company and provide services but they are not employees of the company. They could be designers, IT professionals, or web experts who contract with a company and get paid as a result of providing services. They are paid according to the contract signed either they could work for hours or days with the company. There is no tax deduction from their cheques.
Other self-employed businesses which self-empowered the workers
The partners in a partnership are also self-employed; they maintain the business and share profit and loss of the earning. Similarly, the members of limited liability companies (LLC) are all self-employed. Every owner or member of LLC works with liability protection but runs the business like a sole proprietor. The members of multiple LLC run their businesses like partners. All these business fields self-empowered the workers and helped them stand to own their own.
Gig workers and self-empowerment
With the advent of the gig economy, the work has been digitized. People are hired by the companies online and they work for the company. Like uber drivers, consultants, roadrunners are hired by the owners. While working they are performing the task for the company and its clients and at the same time, they are earning for themselves. The minor portion of their income is received by the company and the major portion goes to their account. They enjoy flexible hours of working and can control their income by increasing or decreasing their working hours. He is his own boss. But on the same ground, they don’t receive perks like health insurance, weekend leaves, retirement plans and they withhold taxation. Gig workers are self-empowered to some extent but they don’t earn as much as other businessmen can.
Self-employed individuals and income taxes
The sad aspect of self-employment is, you need to pay your self-employment taxes including Medicare and social security taxes. But if you are working with your own will, according to your timing and earning a handsome amount for you and your family then paying tax is not a problem. If the net income of a self-employed person is $400 or more each year, he has to pay 15.3% of his total income annually.
Self-employed people pay their income taxes. As we have seen there is a long list of people who are self-employed if you run your business as a sole proprietor, you need to complete a document named Schedule C and pay self-employment taxes according to your annual income. For partners in a partnership, multiple members of LLC, the criteria are somehow different. They have to prepare a file (for tax return of their income) and they have to complete Schedule K-1 to show your share in the business.
Types of self-employment which can self-empower the people out there
Self-employment opens new doors to earning. If you want to work according to your taste and you want to be your own boss, self-employment is the best option. Any skill, any interests you have, you can make it your career. One thing more, when you work according to your will, you work more and can spend working hours and hours without break, as you are following your passion. They are endless opportunities in the field of self-employment which can self-empower the people, especially the young generation.
Virtual Assistant Service
If you are a responsible person, can talk with fluency, and want to enjoy flexible hours of working you can work as a VA (Virtual assistant). You can be hired as a VA in a company and can take responsibility for dealing with customers online and offer other services to your company.
A logo is the symbol of the company. If you are good at making logos, designing visiting cards, brochures, flyers, and other branding elements for the company. You could be self-employed as a graphic designer and offer your services on freelance websites and can work on a contract basis with the companies.
If you want to move out of your house and provide service in your community, you can be self-employed. People who are too busy in their life and cannot complete their tasks on their own, hire other people to do some tasks for them like taking their clothes to the laundry or dry cleaner and bringing them back. The errands are paid hourly or weekly for doing service.
If you cannot afford a shop’s rent and can’t manage products in the store, you are given the opportunity to sell your products on online stores like Amazon or eBay. You could make your own website and start selling your desired product there.
Life Coaching Service
If you think you are a good therapist and can work for the people’s betterment in the sense of mental and physical health, you could work as a life coach. A life coach can solve other people’s problems and take them out of stress and depression. He listens to them and guides them on how they overcome their troubles and put them in a state of rest and calmness. He prescribes them to take that diet, which is suitable for their condition. He gives behavioral therapy. He is not a doctor but his words are more effective than medicine.
If you know how to train a person to achieve his desired goal in body shaping and bodybuilding, you can set up a home gym or train people at their premises about doing exercise and making them fit.
If you know how to fix a car, how come washing any vehicle then you can self-employ yourself and offer your services to the people. You just need a few gadgets and move to other people’s places and fix their car and wash them and get paid in return.
There is a great demand for hairstylists in the showbiz. You can offer your services there or you can set up a small studio where clients come and enjoy your services. You can get paid for the services you offer.
Child Care Services
Children are the blessing of God and never let you get bored even for a minute. If you have experience of dealing with children, you can invest a little to open a daycare and offer child care service.
Dog Walking Service
In American and Europe mostly people have pet dogs at their homes. If you really think you can work with a dog then advertise your services in your area and let other people know, if they don’t have time for their pet you could do the service and get paid for it.
If you are good at using a camera or have a professional degree in photography, you can offer your services to other people and cover events like parties and weddings, make portraits, and even offer pet photography and get paid in return.
If you are good enough to write short stories, you can write and get your book published. These books could be sold on marketplaces like Amazon or eBay and you will be rewarded for your service.
Creating a YouTube Channel
Another amazing opportunity for self-employment is creating a YouTube channel. If you have knowledge related to any topic of the world you can come in front of the camera and share your knowledge with the world. Ask people to like and subscribe to your channel and share it with their friends. As the watch time and likes on your videos will increase you will get paid from Google for this as a reward.
If you want self empowerment in yourself then you have to be self-employed. These are the few ways through which you can get self-employed and these ways can help in self- empowering you too.