What is the Difference Between Being Self-Employed and a Small Business Owner?

self-employed vs. small business owner

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 = Someone who work for themselves

  • Small Business Owner =  Someone who 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.

TL;DR: Use whichever term feels like it fits your situation – we don’t judge.

P.S. Want to learn how to manage your money better as a therapist? Now you can learn directly from Toni Cameron, CPA with our new on-demand webinars! Check out our most popular webinars here.
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Toni Cameron, CPA

Business Consultant, CFO Services, "The DM"

Toni is an accountant by day and gaming geek by night. As an accountant, Toni’s focus is dedicated to people like you — individuals, nonprofits, and small business owners. Toni’s adamant about taking care of all the things you just don’t have time to because she understands the value of a proper work-life balance.

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