J.K. Lasser's Guide to Self-Employment, 2nd Edition

Introduction

If you're thinking about starting a business, you have already begun one, you engage in gig work on a full-time, part-time, or occasional basis, or you just have some side hustle, you are not alone. There are estimated to be more than 30 million workers who are already self-employed and file Schedule C to report their income and expenses. And a 2019 survey by FreshBooks found that an astounding 24 million employees are thinking about leaving their full-time jobs to pursue self-employment. The latest statistics show that Schedule C filers collectively had profits of $328.2 billion, with profits on the rise. The Federal Reserve says that 3 in 10 adults in the United States are engaged in the gig economy. And looking ahead, the number of people working for themselves in some capacity is probably going to continue.

There are several reasons why the ranks of self-employed individuals are expected to grow:

• Entrepreneurial spirit. More and more people are being bitten by the bug to start their own businesses. Some simply want to make a living to support themselves and their families. Others want to change the world through their business activities. Seniors who retire from their jobs and want a meaningful “second act” in their lives are starting businesses; they are called encore entrepreneurs. And Gen Z'ers have a new view of entrepreneurship that offers them the opportunity to sell their skills and work independently. One recent survey found that 70% of those about ...