Corporate Job vs. Self-Employment

I'm having quite the internal debate right now. I have a sales job which, for the most part, I enjoy. It pays well, I have good health insurance, I like my co-workers, and (well, most days) I enjoy the work. However, I have a fantastic opportunity to become a full-time, freelance editor, working primarily for one company which assures me of a steady flow of editing work. (This company supports a number of full- and part-time editors, so I'm very confident I could provide for myself on their editing work.)

Who here has moved from a corporate job to being self-employed? I want to consider all angles of the potential job switch - so, what should I be considering? I'm not going to lie, the idea of being my own boss really appeals to me, but I'm a little frightened by the messy tax forms and the thought of providing my own insurance.

Thoughts?

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CONS:
Healthcare: probably $500+ per month
You have to pay your own taxes quarterly, including social security and medicare. (You also shoot yourself into "most likely to be audited" category, too)
Not eligible for unemployment.
Not eliglble for retirement plans, unless you set it up yourself.
No guarantee of paycheck continuity.

PROS:
You're your own boss.
You set your own hours, choose your own projects.
You have tons of legitimate writeoffs.

The IRS has a publication that lists the qualifications for being a 1099. I'd research becoming self-employed thoroughly before going at it. You'll also have to consider liability, and may want to incorporate or at least form an LLC to protect any assets you might have.

Good luck.

i'm not particularly familiar with your area of work... the biggest con, as was said earlier is Health Insurance, also there is a ton of security in a corporate job. You also have to weigh the ability to be promoted, and your ability to network in the freelance job. Good Luck!

move to Canada!
free healthcare!

You can do what I do -- work as a consultant to corporations. The hours are as flexible as the corporation will allow for, but you can charge them enough to make it very worth your while.

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I really appreciate all the responses... keep 'em coming! I will absolutely keep y'all posted as to how things progress.

ETA: Pro of self-employment - no one to tell you that you're spending too much time on BWW!

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Updated On: 9/26/06 at 02:08 PM

This is true, Rath.

The bank account wouldn't speak - it would scream!

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Good luck Costume Mistress

At my age,I will be chained to a desk until I retire or I die. Thems the breaks but it pays the bills so.....

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Good luck! I'm also working toward the self-employment for something similar to you, but don't have the jobs lined up enough to quit my "day job" (also in sales).

My best wished to you as well. My husband and I have been involved in both business worlds. It's a tough choice and largely depends on your lifestyle, age, current financial situation and longterm expectations.

Having experienced both, I would have to say that a corporate position when you are young 21-35 is a wise choice. It allows you to build a solid finaicial future, 401K, investments, etc. plus the experience and maturity you need to take the leap into your own business.

Once this is established, hopefully, you are in a better position financially to go on your own. Lenders, SBA (small business assoc) also will be more willing to invest in you. Just remember to listen to solid advice and start out small with realistic goals and stick to your business plan.

Treat this like your treasure and work it wisely. Bring in people that can help you help yourself but be cautious of business "partners". Go it alone as long as you can. Best to you!

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Congratulations! This should be a very exciting part in your journey.

Working on your own takes great discipline and 'cojones.' You go girl!

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