Pros of being an independent contractor
- you retain autonomy. In theory, as an independent contractor, you’re supposed to be your own boss. As such, you have control over your hours, how much you charge, how you do the work etc.
- you may be able to put more money away in tax deferred accounts
Cons of being an independent contractor
- independent contractors are taken advantage of; they should be classified as employees, but their employers unlawfully classify them as independent contractors in order to bypass payroll taxes and benefits
- no fringe benefits from employer
- have to maintain unemployment insurance in some industries
- responsible for filing taxes. This could be a good thing if you keep track of your expenses, which you will be able to deduct from your earnings