Working for Yourself in a Trade
Aligned to CTE:CC-11 — Jump$tart National Standards in K-12 Personal Finance Education & Advance CTE Career Clusters.
What this lesson teaches
Many tradespeople eventually run their own shop. That means doing the trade plus a second job: quoting, invoicing, insurance, licensing, taxes and scheduling. The skill that makes you a good electrician is not the skill that makes the business survive, and both have to be learned.
Worked examples
Example 1
Self-employed workers pay both halves of Social Security and Medicare — about 15.3% — and owe estimated taxes quarterly instead of having them withheld.
Example 2
A quote has to cover materials, your hours, insurance, vehicle, tools and the unpaid hours spent quoting jobs you do not win. Charging only for the hours on site is how small shops fail.
Example 3
Liability insurance and a contractor's license are not optional. Working unlicensed can void your insurance and make a signed contract unenforceable.
Practice questions
- List five business tasks a self-employed tradesperson handles beyond the trade itself.
- Why is self-employment tax higher than an employee's payroll deduction?
- Name three costs a quote must cover besides materials and on-site hours.
Watch the lesson
Every lesson comes with a video taught in English and Spanish — the same video the QR code in the printed workbook opens.
▶ Watch this lessonEn español
Trabajar por tu cuenta en un oficio
Muchos profesionales de los oficios acaban con su propio taller. Eso significa hacer el oficio más un segundo trabajo: cotizar, facturar, seguros, licencias, impuestos y agenda. La habilidad que te hace buen electricista no es la que hace que el negocio sobreviva, y hay que aprender las dos.
Ejemplo 1: Quien trabaja por su cuenta paga las dos mitades del Seguro Social y Medicare — cerca del 15.3% — y debe impuestos estimados cada trimestre en vez de que se los retengan.
Ejemplo 2: Una cotización tiene que cubrir materiales, tus horas, el seguro, el vehículo, las herramientas y las horas no pagadas cotizando trabajos que no ganas. Cobrar solo las horas en obra es como quiebran los talleres pequeños.
Ejemplo 3: El seguro de responsabilidad civil y la licencia de contratista no son opcionales. Trabajar sin licencia puede anular tu seguro y hacer que un contrato firmado no se pueda hacer valer.
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