No. of Recommendations: 4
<I've never had any trouble getting approved for a loan...nor does any "going concern.">

I've been self-employed for almost 20 years, making a higher-than-average profit for my industry almost the entire time, and I have most certainly run into difficulties in getting loans. Since I've heard the same from many, many other self-employed folks, I doubt I'm alone in this. When I bought my home, the real estate agent finally told us just to take my income off the loan application, even though my hubby was only working part-time at the time, because otherwise it was going to take forever to go through. And that's after I had already provided all kinds of Profit/Loss statements, copies of my 1040s, etc. Unfortunately, since the IRS doesn't reveal your income to these loan agencies, unscrupulous self-employed persons in the past have apparently supplied photocopies of their 1040s with the income magically changed, so it reflects back on everyone and leads to a general lack of trust in the self-employed. Another drawback I'm just reminded of...the IRS seems to believe that all self-employed people steal because of the actions of a few, and so you tend to have your taxes audited a lot. I was audited many years in a row until they gave up after never finding anything but sometimes I had to go around and around in circles for months to prove that I didn't owe certain taxes.

With all the hassles, I wouldn't go back to being employed either. But it is not because of some fantasy about "freedom." It's because I like what I am doing. This is the only reason to be self-employed, not because you think you'll get rich (most small businesses fail and often a personal bankruptcy as well as a business bankruptcy will follow, so the odds are against you) or because you think you won't have to work as hard (ha! if you are successful at times you are working day and night!!!). I have the impression that the person asking the question thinks being self-employed is the road to riches. This is generally untrue although of course there are exceptions. However, most folks I know who are self-employed have substantially less in assets than they would have if they had simply held a job.
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