The Rise of the Self-Employed
The Rise of the Self-Employed
Have you been thinking about taking your career into your own hands? Find out if the self-employed lifestyle is right for you.
What are Freelancers and Independent Contractors?
In today’s rapidly changing work environment the self-employed are on their way to becoming the norm of the new economy. The self-employed are primarily freelancers and independent contractors. While both freelancers and contractors provide outside services for businesses, a freelancer is typically an individual that handles multiple clients and is in charge of handling their own taxes and benefits. Independent contractors are paid hourly, usually through a W-2 and are chosen for long term projects.
The Trend Moving Forward
A joint report issued in 2017 by Upwork and Freelancers Union states that some 36% of the workforce in the United States is composed of the self-employed, which is about 57.3 million people in America. The freelance workforce has consistently experienced triple the rate of growth of the traditional workforce since 2014. At this rate, the self-employed will make up the majority of the workforce as early as 2027.
Many different careers can fit into freelance and contract work, and are not limited to the usual creative fields like marketing, web content management, and graphic design. Teachers, tutors, accountants, and more are making the move to self-employment as well.
Benefits of Freelancing
Embracing the life of a freelancer could in fact make one better prepared for the future. Advancements in AI, increased automation, and economic instability have pushed more people to take their careers into their own hands. Already machines are replacing jobs that were once taken for granted. This will only get worse in the coming decades.
Because of their experiences with multiple companies, freelancers have a diversity of skills compared to those who have spent their life at the same job. More skills mean that the freelancer is more appealing to a greater number of clients, and as a result has a more extensive portfolio of potential opportunities. While freelance work may not be the most consistent and make income a less predictable factor, many freelancers are of the opinion that multiple clients provide a greater sense of security than a single employer.
Pro-Tip: Many freelancers create a Florida Limited Liability Company to protect their personal assets.
Disadvantages to Freelancing
As mentioned above, freelance workers and those in the gig economy suffer from a less reliable stream of income than those working for other companies. Increased freedom also means an increase in personal responsibility. It will be up to you manage your own networking, workload, and client outreach. Self-discipline is also a must-have. Your freelance career will never take off if you cannot avoid distractions, buckle down, and get to work!
Freelancers can reduce their personal liability is by incorporating themselves as a Florida Limited Liability Company or a Florida Corporation. If you are a freelancer, check out our business formation service.
Looking to start a business or grow your current business? Contact FL Patel Law today by visiting our website or calling 727-279-5037.