“If you work for yourself, does that automatically make you self-employed?” The answer is: yes, freelancing is largely considered self-employment. However, it's important to note that not all self-employment is freelance work.
Freelancing is self-employment, but here's the catch—self-employment includes other forms of work too, like running a small business. Freelancers typically operate as independent contractors, providing specialized services to clients without a traditional employer-employee relationship. Self-employment, on the other hand, covers a broader range, including entrepreneurs and tradespeople.
How Does Freelancing Connect to Self-Employment?
“Freelancing is a widely recognized form of self-employment today, allowing individuals to embark on a self-directed career path.” Freelancers and self-employed individuals share similar independence while managing many aspects of their work.
Freelancers often work on a per-project basis, providing services like graphic design, writing, or consultancy.
Both freelancers and other self-employed individuals take charge of finances, taxes, and business decisions.
While flexibility is a hallmark for both, it requires discipline to stay organized and on track.
Example
A freelance graphic designer may source clients, manage marketing, set pricing, and handle invoices themselves, all of which are hallmarks of self-employment.
What Does It Mean to Be Self-Employed as a Freelancer?
“Being self-employed as a freelancer extends beyond freedom; it involves embracing significant accountability.” Freelancers have complete control over their work but are also responsible for the operations of their independent businesses.
Key Responsibilities:
Managing Finances: File taxes as a self-employed individual and keep track of variable income.
Client Relations: Source clients, secure projects, and maintain positive working relationships.
Administrative Work: Invoice clients, track expenses, and organize workloads.
Self-Management: Balance flexibility while staying productive and meeting deadlines.
Tip
Use tools like budgeting apps or accounting software to simplify finance tracking and manage irregular income.
Are Freelancers Considered Self-Employed?
“Yes, by definition, freelancers are self-employed, each providing a unique facet to the self-employment identity.”
If you file taxes as an independent contractor, you’re self-employed. Freelancers are classified as self-employed under tax codes worldwide. However, they differ from most business owners since they primarily focus on selling their time and skills instead of running a team or selling products.
What Are the Benefits of Freelance Self-Employment?
“The benefits of choosing freelance self-employment are notable, contributing to its rapid global growth.” Here’s why:
Control Over Schedule: Set your working hours and align them with personal commitments.
Diverse Opportunities: Collaborate across industries, gaining exposure to varied projects.
Higher Earning Potential: Specialize in a niche to charge higher rates or expand services for more clients.
Flexibility in Work-Life Balance: Structure work to meet personal needs and preferences (if well-managed).
Tip
Create a consistent daily routine to maximize productivity while maintaining flexibility.
Conclusion: Finding the Intersection of Freelancing and Self-Employment
“Now that you know how freelancing and self-employment overlap, are you ready to take charge of your career path?”
Freelancing is undoubtedly a powerful and flexible form of self-employment, allowing you to shape your career around your passions and skills. However, succeeding in this realm means embracing the responsibilities and challenges of running your own business. Evaluate your strengths, goals, and readiness to manage this independence to determine if freelancing is the right path for you.