Working From Home:
Employee or Self-Employed?

Working from home usually means one of two things:

1. Working for an employer, but doing your job at home. In this case, you normally work out an arrangement with your employer for turning in your work, keeping in contact with others in the office, and so on.

2. Being self-employed. One of the most popular forms of work at home self-employment is running an online business.

No matter which option you choose, there are advantages and disadvantages. Despite the loud proclamations of the benefits of being self-employed, it isn't for everyone. What you'll be happier with - being an employee or being self-employed - will depend on your personal circumstances, your personality, and a variety of other factors. Choose what's right for you.

Work from Home for an Employer		Self-Employed
Steady, guaranteed income. Typically you are paid a salary or an hourly wage. You know how much you'll be bringing home every pay cheque. Makes it easier to plan expenses or budget.		Variable income. How much you make depends on how much time you spend working on your business, how much effort you put into it, and the market conditions at the time. More difficult to plan or budget; recommended that you hold extra cash in case you have a bad month.
Your employment is dependent on the whims and goodwill of your employer. You have no control over your job stability; layoffs are a fact of life that you may have to deal with.		You are always employed. Your job is "stable" because you are the one that creates your job. You only lose your job if you make the decision to close down your business.
Your employer typically offers you some sort of benefits package. Employees normally receive some form of healthcare benefits, whether that includes medical, dental, or vision coverage or a combination of them. You may also receive incentive plans or bonuses.		You are responsible for your own healthcare benefits. You do not get any bonuses or other incentive plans unless you create them yourself.
You must answer to a boss or supervisor. What you do is decided for you by your boss.		You answer only to yourself. You do what you have do; your work is dictated simply by what needs to be done.
You typically have a specific set of duties or responsibilities. Your work is usually focussed on one set of skills, such as word processing, programming code, or marketing. Good for people who prefer to know what is expected of them.		You have a hand in everything, particularly if you are a sole proprietorship. Often you are secretary, marketer, programmer, janitor, receptionist, and bookkeeper all rolled into one. Great for people who like to do a variety of different things.
How much you make depends on the company you work for. Typically you'll get a raise every year based on your performance.		How much you make depends entirely on you - how hard you work, the time you spend growing your business, how well you learn and adapt to changes, and so on.

In this section:

Working for an Employer vs. Working for Yourself

Advantages and Disadvantages of Home Based Work

How to Protect Yourself from Scams

Are You an Entrepreneur?

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