Self-Employed

AAA

DEFINITION of 'Self-Employed'

A situation in which an individual works for himself or herself instead of working for an employer that pays a salary or a wage. A self-employed individual earns their income through conducting profitable operations from a trade or business that they operate directly.

INVESTOPEDIA EXPLAINS 'Self-Employed'

It is important to note that being self-employed is a different situation than simply being a business owner. A business owner is someone who owns a company but does not work with the day-to-day operation of the company. In contrast, a person who is self-employed owns their own business, of which they are also the primary or sole operator. Furthermore, there are often different taxation-related implications for being self-employed versus being a normal employee or a business owner.

RELATED TERMS
  1. Mompreneur

    A slang term describing women who run their own businesses while ...
  2. Lipstick Entrepreneurs

    Independent, self-employed businesswomen who sell makeup or other ...
  3. Captive Agent

    An insurance agent who only works for one insurance company. ...
  4. Business Bondage

    A state of feeling inexorably intertwined or even imprisoned ...
  5. Self-Employed Person

    An independent contractor or sole proprietor who reports income ...
  6. Partnership

    A business organization in which two or more individuals manage ...
Related Articles
  1. Are You An Entrepreneur?
    Entrepreneurship

    Are You An Entrepreneur?

  2. Top 4 Financial Jobs You Can Do From ...
    Entrepreneurship

    Top 4 Financial Jobs You Can Do From ...

  3. How To Qualify For The Home-Office Tax ...
    Taxes

    How To Qualify For The Home-Office Tax ...

  4. Can You Handle A Home-Based Business?
    Entrepreneurship

    Can You Handle A Home-Based Business?

comments powered by Disqus
Hot Definitions
  1. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  2. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  3. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  4. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  5. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
  6. Earnings Before Interest After Taxes - EBIAT

    A financial measure that is an indicator of a company's operating performance. EBIAT, which is equivalent to after-tax EBIT ...
Trading Center