Freelance Vs Self Employed: What’s The Difference?

Freelance Vs Self Employed
Freelance Vs Self Employed

Are you looking for a better job or career path? Are you wondering whether to go freelance or self employed? There are pros and cons to both options, and sometimes it makes sense to try both before deciding where to head next.

In recent years, freelancing has become more common than ever. People are starting their own businesses from home, working remotely, and even setting up their own companies. This trend has created a new type of job opportunity for those who want to earn extra cash, build their portfolio, or take control of their time. 

Self-employed people are the main drivers of economic growth in many countries. They provide an important source of employment outside of the traditional corporate world. Freelancers are also known as independent contractors, part-time workers, contract workers, virtual assistants, temporary workers, gig economy workers, etc.

In this article, I’ll explain the differences between freelancing and self-employment and why they might suit you differently.


A freelancer works independently by offering professional services to different clients. For example, a graphic designer may offer his or her skills to different clients, such as small businesses or large corporations. A freelancer typically works through online platforms like Upwork and Fiverr

Freelancers are independent workers who earn money by completing tasks. They can choose how much time they want to spend working instead of sitting at a desk. Freelancers often choose to work from home or at a place other than a traditional workplace.

Freelancing is an attractive option for people who want to work flexible hours and set their own schedule. Freelancers can choose when to work and what to focus on each day. They also have greater flexibility in terms of location. However, as with any business model, there are some drawbacks. 

How Much Money Do Freelancers Make Per Hour?

A freelancer makes anywhere from $10-$100 per hour depending on his/her skillset, experience, location, etc. For example, if you’re a graphic designer with 5+ years of experience making websites, you can easily command a $25-$150 hourly rate.

On the other hand, if you are just getting started, you might only get paid $5–$15 per project. It all depends on your negotiating power.


You can work from anywhere at anytime. You don’t need to worry about commuting or finding office space.

There are no boundaries or restrictions. As long as you meet your deadlines, you can complete the project however you see fit.

You get paid per project, so you can decide how many projects to work on at once. You don’t have to deal with employees or payroll taxes. You can easily scale your income. You can always turn down projects that aren’t interesting to you. You can often negotiate higher rates with larger employers.


It takes time to establish yourself as a reliable worker. If you’re not careful, you could lose out on potential jobs because you haven’t built up your reputation yet. It’s difficult to find steady clients.

If you’re not good at marketing yourself, then getting hired will be hard. Your client base might be limited to specific industries, demographics, or locations.


A self-employed person owns and operates a business enterprise. He or she usually takes care of most aspects of running the company, including hiring employees, paying bills, and managing inventory. In addition to earning money, being self-employed can also achieve personal goals. They can use their earnings to buy things they want, save money, or invest in stocks and bonds.

If you want to start your own company, you could opt to run your own business either full time or part time. In addition to providing the same services as a freelancer, a self-employed person owns his or her own company.

You are considered self-employed if you run your own business. A business owner must pay taxes individually, even if he hires employees to do work for him. He also must file a tax return and pay income taxes based on what he earns.

Self employed people do not have contracts of employment. They are more likely to be contracted by an employer to work for a fee over a set amount of time. This means they are more likely to be in business in their own right. 


When you own your own business, you have complete control over your time and your earnings.You can create a lifestyle that suits you. You can design your own working environment. You can hire anyone you’d like, regardless of age or qualifications. 

There are no limits to what you can do if you run your own business. If you have a particular skill or talent, then you can use it to make money. You can sell products that you design, manufacture, or produce. You can start a side hustle and generate additional income streams. 


Starting a business requires a significant amount of upfront capital. You may need to borrow funds to purchase equipment or to hire staff. You’ll probably have to spend a lot of time building up your customer base.

It takes months or years to launch a successful business. Starting a business involves legal formalities that can be complicated and expensive.

What Are The Differences Between Freelancing And Being Self-Employed?

When you’re looking at the pros and cons of both options, remember that there are many factors involved. Here are some differences between freelancing and being self-employed:

1. Flexibility

As a freelancer, you have more flexibility in terms of when and where you work. You decide how much work you take on and when you will get paid. Your clients don’t dictate your schedule.

As a self-employed person, you have less flexibility with respect to your hours and location. You must meet certain criteria before you can open your own business. You must have experience running a business, and you must provide proof of financial stability.

2. Control Over Work Schedule

A freelancer works on projects that interest them. Their clients determine whether they want to work full-time, part-time, or occasionally. As a freelancer, you usually have little control over your work schedule.

A self-employed person sets his own hours and decides how often he wants to work. He also determines his pay rate.

3. Independence

You become independent as a freelancer because you choose your clients and negotiate your rates. You are responsible for growing your client base and generating revenue.

As a self employed person, you keep all the profits and losses. You set your own prices, manage your expenses, and hire employees.

4. Financial Security

As a freelancer, you may not always know how much you will earn. You may receive an hourly fee or get paid for every completed project.

As a self-employed person, you typically know exactly how much you will earn every month. This allows you to plan ahead.

5. Opportunity For Growth

If you’re a freelancer, you can grow your business by taking on additional projects and increasing your skills. 

If you’re a self-employed person, then you will likely stick with what you’ve got. If you do expand your services, it could mean hiring employees to help you grow your business.

6. Taxes

Taxes are different for freelancers and self-employed people. If you are a freelancer, you generally deduct your business expenses (such as rent, utilities, etc.) from your taxable income.

On the other hand, if you are self-employed, you report your earnings on your tax return.

7. Income Potential

As a freelancer, your income potential is limited only by your creativity, skills, and drive. As a freelancer, your income potential is limited only by your ability to generate leads and close deals. If you’re good at what you do, you may make a great living working as a freelancer.

As a self-employed person, you need to be prepared to invest time and effort into building up your business. It takes hard work and dedication to succeed. As a self-employed person, your income potential is limited by your ability to sell your products or services. 

4 Benefits of Working As A Freelancer Over Being Self-Employed

Freelance Vs Self Employed

There are many benefits to being a freelancer over being a self-employed person. Some freelance people find that their job gives them more freedom than a traditional 9-to-5 job. Others enjoy having greater flexibility in scheduling their days. And some like the idea of earning money while they sleep!

1. Freedom

Being a freelancer means having more freedom than most jobs. You decide when and where you work. You decide how long each project lasts. You don’t have a boss telling you when to start and stop.

2. Flexibility

Working as a freelancer gives you more flexibility than a regular job. You can take off whenever you want. You can work part-time or full-time. You can even work from home.

3. Control Over Your Schedule

Working as a freelancer gives you control over your schedule. You can choose which assignments to accept and which ones to decline. You get to decide when you work and how long each assignment lasts.

4. More Time To Do Other Things

Many freelancers say that they use their extra time to spend with family, read books, exercise, travel, volunteer, learn new things, or simply relax.

Is One Better Than The Other?

The answer depends on who you ask. Some people would say that being self-employed is better than being a freelancer. Others disagree. Both options offer benefits, so it really comes down to personal preference.

Being self-employed offers greater flexibility and control over one’s life. However, starting a new venture requires substantial investment. On the other hand, being a freelancer provides freedom of choice and independence from others. Like I said earlier, the choice comes down to personal preference.


There isn’t one single answer to whether or not you should freelance or start a business. Each person has unique circumstances, goals, career ambitions, and preferences. If you think freelancing would be better suited for you, then go ahead and give it a try. But if you prefer owning your own business, then the choice is yours.

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