Many people tend to use “self-employed” and “small business owner” interchangeably when discussing their business. At TL;DR, we refer to different types of clients as noted below:
- Self-Employed: Works for themselves
- Small Business Owner: Hires employees or independent contractors
I refer to TL;DR: Accounting as a small business, especially since our team has grown, but that doesn’t mean that if you have hired employees that you can’t refer to yourself as self-employed.
There is no tax difference between being self-employed or being a small business owner. The biggest dictator of your tax situation depends on how your business is formed, like making the S-Corp election.