Self-employed business owners work independently, without a boss or company to report to. They are their own bosses responsible for managing their business operations and finances, and they don't usually have employees.nnTypes of self-employed businesses include:nnSole Proprietor: Sole proprietors are individuals who run their own businesses and are considered self-employed. In a sole proprietorship, the individual is personally responsible for all aspects of the business, including profits, losses, and liabilities.nnIndependent Contractor: Independent contractors are self-employed individuals who work on a project basis for various clients. They are not considered employees and are responsible for managing their taxes, benefits, and work schedules. Types of independent contractors include freelance writers, graphic designers, virtual assistants, photographers, consultants, web developers, and social media managers.nnFreelancer: Freelancers are self-employed individuals who offer their services to clients on a project-by-project basis. Unlike independent contractors, freelancers typically work for multiple clients at once and choose their locations and work hours. Freelancers can include graphic designers, writers, web developers, virtual assistants, and consultants.nnFun Fact: The term freelancer originated from Sir Walter Scott's novel Ivanhoe, where free lances were mercenary knights who fought for whoever paid them. So, freelancing today means wielding your skills like a modern-day knight, choosing your quests and clients.nnSelf-Employed Business Taxation nnOne of the primary distinctions for self-employed businesses is how they are taxed, which is typically different than for other business entity types. Self-employed individuals are subject to self-employment tax, including the employer and employee portions of Social Security and Medicare taxes. nnOther business entities, such as corporations or partnerships, may be subject to different tax rates and regulations depending on their structure and income. Self-employed workers should understand their tax obligations and consult with a tax professional to ensure compliance with the law.