| It is very common to know at least one person who | | | | service they do by working with companies as |
| works from home but it is not always clear what it is | | | | individuals categorized as independent contractors. |
| that they do. As in any business there are two areas, | | | | They will work with companies providing their service |
| service and product. The confusion is when services | | | | but will not become employees of that company and |
| are provided because of the slight differences in how | | | | will be paid by an agreement being a written or verbal |
| the business can be formed and how the service is | | | | contract. This can mean that they will be paid per |
| provided. | | | | piece of work completed or within a certain time |
| It is considered a small business when someone is self | | | | frame. Some jobs that are generally performed as a |
| employed even if the business only contains that one | | | | freelancer are writers, product production, advertisers, |
| individual. This is called a sole proprietorship. The | | | | transcriptionists, sales, and data processors. |
| person's name becomes the business name which | | | | The flexibility of doing freelance work from home is |
| doesn't require any extensive business applications | | | | only one reason why people choose this way of |
| being that it is structured mainly for tax purposes. | | | | income. Being self employed and creating their own |
| When a business name is developed, there is much | | | | income potential are other incentives but can also bring |
| more involved and a company is formed while it can | | | | on apprehension when considering this work with the |
| still be a sole proprietorship. Freelancers fall into the first | | | | idea that it is a solitary position in an unknown area. |
| description where as they normally do not create a | | | | With positions like this in higher demand, there are |
| business name outside of their own. | | | | numerous places to obtain information as well as |
| Working as a freelancer is more common than | | | | people to seek advice from to address any concerns |
| creating a small business most often because it is less | | | | along the way. |
| complicated. These people will provide what ever | | | | |