The term self-employed refers to an individual that owns a business, or works as an independent contractor for another company. Self-employed individuals enjoy a number of freedoms; however, they also have several significant responsibilities too.
Self-employment provides business owners, freelancers, and independent contractors with the opportunity to "be their own boss." While business owners will share in the profits of their companies, freelancers will be paid a fixed fee or charge an hourly rate for their services. Self-employed individuals enjoy a number of freedoms and directly benefit from their hard work and innovations.
These same individuals also have several responsibilities that corporations typically provide to their employees, including:
Note: Freelancers and independent contractors are not entitled to worker's compensation since they are not employees of a company.