Home Based Businesses vs. Work at Home Job

There are some very distinct differences in having a home business and working at home, or having a work at home job. Home based businesses have the center of all operations at your home, while and work from home is just a job in which your contribution is the only part of the business based in your home. A work at home job is generally done on a freelance or telecommute basis, where you report to an employer. However, some freelancers also have home based business, where there isn’t an employer, but a client. Both types of business have their advantages and disadvantages.

You will be responsible for claiming all of your taxes, as home based business owners do not generally get a yearly W-2. Instead, you report directly to the IRS what your sales were. For those who work at home however, the employer reports you and sends a w-2 at the end of the year. Freelancers, after you’ve reached a certain sales level the employer reports that amount.

Home based businesses also do not have health care benefits, worker’s compensation, unemployment insurance, etc. Some insurance companies do offer partner discounts on purchasing these benefits, but the home based business owner must pay for these himself. Workers from home may have benefits if they are telecommuting, but freelancers are responsible for their own.

Freedom in project choice, time flexibility and the comforts of a work at home job are all benefits of both types of home jobs. Work from home may have some restriction placed upon the employee by her employer. However the home environment offers more freedom than the office does. Some home business owners and home workers quickly find that this freedom is a double-edges sword. It is all too easy to get caught up in a book, movie or other mindless activity. Procrastination added to the distraction equals missed deadlines and shoddy work. Thus, self-discipline is a must for anyone who plans to work of base a business from home.

Most home based businesses earn you money because you sell a product or service. There are some however, that only garner earnings for the salesperson based on the number of new people recruited to the business. These types of businesses are also called pyramid scams, as your success depends on the number of people that you recruit into the program. Each recruit pushes you further up the payment tier. Tour own product sales are often not important in such scams

Aside from sales, there are a number of homes based businesses that you can start up on your own. This includes a portrait studio, gardening center, and marketing company among other things. No matter what you choose, a home based business is one in which all operations originate from the home.

No matter which type of home work you choose to go with it is best to ask questions and have a feel for the business itself before agreeing to anything. Some of the most successful home based business owners are the ones who bought and loved the product and chose to sell it later on. Some of the happiest workers are those with a work at home job.