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Self-employment certainly isn't for everybody, but your "companies afford certain things to their employees that freelances do not receive" deserves a response.

Self-employment certainly isn't for everybody, but your "companies afford certain things to their employees that freelances do not receive" deserves a response. When you are self-employed, you employ yourself. Most if not all of the benefits that a company can provide to its employees, you can provide to yourself. Many of these benefits qualify as business deductions, and while some of them (such as medical insurance) might cost more when not purchased as part a group (company), that's not always the case. For instance, if you're young, in relatively good health and have reasonable earnings, a high-deductible health plan coupled with a health savings account might actually be more attractive than what you receive from the average employer. In other areas, such as retirement, self-employment can be a boon. If you're a sole proprietor, for instance, you can set up a self-directed 401(k). Each year, you can contribute up to $17,500 as an elective deferral and up to 20% of your net self-employment income up to a total of $51,000 (at 2013 limits). So if you're doing brisk business as a freelancer, it can be very easy to save more than you ever likely would if you worked at a company and just took the 3-5% 401(k) match (assuming this is even offered). Can working for a company be more lucrative, more secure, and easier for some people? Absolutely. But for others, working for yourself can be even more lucrative, even more secure and far more enjoyable.

quanticle 13y ago
The main problem is health insurance. Contra your claims, I have never seen insurance on the private market cost less than employer provided group health insurance. Usually, individual insurance is anywhere from 25% to 50% more expensive (at least as far as I've seen), and that's if you're in good health. If you have pre-existing conditions, all bets are off. Even if insurance providers have to provide coverage (thanks to the Patient Protection and Affordable Care Act), they're still free to charge you an arm and a leg. If you're young, in relatively good health and have reasonable earnings, a high deductible health plan coupled with a health savings account might actually be more attractive than what you receive from the average employer. In my experience, a high-deductible health care plan coupled with a health savings account is what you get from the average employer. All of my employers have at least offered the option of a high-deductible health care plan, and for a couple, it was the only option for new employees. At that point, the usual group vs. individual dynamics apply. A high-deductible group health care plan through a corporate employer will be cheaper than an individual high-deductible health care plan.
- 7Figures2Commas 13y ago
  > Contra your claims, I have never seen insurance on the private market cost less than employer provided group health insurance. I pay under $275/month for a HDHP and the maximum I contribute to the HSA each year exceeds the deductible. I don't know what a similar plan would cost through an employer, but all things being considered, including the fact the premiums are a deductible business expense and the HSA contribution is pre-tax (post SE tax), I have never once considered that an employer could offer me a significantly better package.
- pjungwir 13y ago
  I work for myself. I'm 36, with a wife and three kids. Health insurance for of us (in Oregon) runs about $600/month. Assuming an employer would pay 100% of my premium, that means to come out equal I have to earn $7200 more each year than I'd make from a salary. For a freelance software developer, that's no problem at all. I agree that if you have a pre-existing condition then the numbers might look a lot different. But if you are healthy, working for yourself is a great opportunity, and you needn't be deterred by the cost of private health insurance.

quanticle 13y ago

The main problem is health insurance. Contra your claims, I have never seen insurance on the private market cost less than employer provided group health insurance. Usually, individual insurance is anywhere from 25% to 50% more expensive (at least as far as I've seen), and that's if you're in good health. If you have pre-existing conditions, all bets are off. Even if insurance providers have to provide coverage (thanks to the Patient Protection and Affordable Care Act), they're still free to charge you an arm and a leg. If you're young, in relatively good health and have reasonable earnings, a high deductible health plan coupled with a health savings account might actually be more attractive than what you receive from the average employer. In my experience, a high-deductible health care plan coupled with a health savings account is what you get from the average employer. All of my employers have at least offered the option of a high-deductible health care plan, and for a couple, it was the only option for new employees. At that point, the usual group vs. individual dynamics apply. A high-deductible group health care plan through a corporate employer will be cheaper than an individual high-deductible health care plan.

7Figures2Commas 13y ago
> Contra your claims, I have never seen insurance on the private market cost less than employer provided group health insurance. I pay under $275/month for a HDHP and the maximum I contribute to the HSA each year exceeds the deductible. I don't know what a similar plan would cost through an employer, but all things being considered, including the fact the premiums are a deductible business expense and the HSA contribution is pre-tax (post SE tax), I have never once considered that an employer could offer me a significantly better package.
pjungwir 13y ago
I work for myself. I'm 36, with a wife and three kids. Health insurance for of us (in Oregon) runs about $600/month. Assuming an employer would pay 100% of my premium, that means to come out equal I have to earn $7200 more each year than I'd make from a salary. For a freelance software developer, that's no problem at all. I agree that if you have a pre-existing condition then the numbers might look a lot different. But if you are healthy, working for yourself is a great opportunity, and you needn't be deterred by the cost of private health insurance.