5. You Think the Pay Will Be Better
Many considering switching to freelancing think the pay will be better. After all, they’ll get to keep all the money they’ve billed out, without sharing any of it with an employer. And that’s true. But you’ll also be responsible for paying all of your own taxes (in the U.S., at least, that amounts to an extra 7.5% in payroll taxes that you have to pay that would otherwise be paid by an employer).You also have all sorts of other business-related expenses you’ll need to pay. Things like office supplies, new equipment, software, and all those other expenses that go along with running a business will all have to be paid by you.
There’s also the difference between hours worked versus billable hours to contend with. Not everything you do will be billable work. Time you spend on administrative tasks aren’t billable.
If you screw up on a project and have to take time to fix it, that’s usually not billable either (at least not ethically). At a corporate job, you generally get paid either for the hours you actually work or on a salaried rate, regardless of how much the client is billed.