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Related to self-employed: freelancer
The state of owning a business or working as an independent contractor. In the United States, self-employed persons pay double the social security tax of employed persons, but are entitled to more tax deductions. One calculates self-employed income by taking one's gross income and deducting all business expenses. For example, a self-employed person working from home may deduct a certain percentage of his/her rent or mortgage and not pay taxes on that portion of his/her income. Self-employed income is reported to the IRS on Schedule C of the 1040 Form.
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self-employeda person who provides his LABOUR (and management) services as a FACTOR INPUT to his own FIRM in the production of a good or service. Self-employed persons act as ENTREPRENEURS, undertaking the risks of running a business, providing some or all of its capital and often hiring EMPLOYEES to perform some of the jobs involved. Self-employed workers constitute a large proportion of workers in such industries as domestic electrical and plumbing services, specialist retailing and hairdressing. See LABOUR FORCE.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005