Legal Definitions - self-employed

A person is considered self-employed when they operate their own business or profession, rather than working as an employee for another individual or company. This means they are responsible for generating their own income, managing their business operations, and typically handling their own tax obligations, such as paying estimated taxes directly to the government. Common forms of self-employment include operating as a sole proprietor, a partner in a business, or an independent contractor.

• Example 1: Maria is a freelance graphic designer who creates logos, websites, and marketing materials for various clients. She works from her home office, sets her own project deadlines, and invoices clients directly for her services. She does not have a single employer who dictates her hours or provides a regular salary.

  Explanation: Maria is self-employed because she runs her own graphic design business. She is responsible for finding clients, managing her projects, and handling her own finances, operating independently rather than as an employee of a company.

• Example 2: David recently started a mobile car detailing service. He drives his equipped van to clients' homes or workplaces, provides detailing services, and manages all appointments and billing himself. He advertises his services and is responsible for all his business expenses and income.

  Explanation: David is self-employed because he operates his own car detailing business. He is not working under the direction of an employer but rather provides services directly to his customers, taking on the responsibilities of a business owner.

• Example 3: Sarah is a consultant specializing in human resources strategy for small businesses. She works with several different companies throughout the year, advising them on their HR policies and employee development. Each company contracts her for specific projects, and she submits invoices for her services rather than receiving a salary or hourly wage as an employee.

  Explanation: Sarah is self-employed because she offers her specialized skills as an independent contractor to multiple clients. She controls her own work, sets her own fees, and is not an employee on any company's payroll, demonstrating that she runs her own consulting practice.