Oh, BTW, as a personal chef/caterer, I can not remember any week where I put in more than about 50 hours billable and, on average, probably closer to 16-24 hours per week.
What difference does that make? Well, at $50/hour and 16 hours/week, that's
- $800/week GROSS,
- less $120 for SS and MediCare (approx 15%)
- probably $80 for income tax reserve (say 10%, maybe it should be 20%)
- $50-100 for health insurance (that's $200-$00/month, YMMV),(remember, self-employed do not qualify for State disability or Worker's comp)
- Say $100 for "unemployment savings", self-employed do NOT qualify for unemployment insurance
That alone, which ignores business licenses and permits, liability insurance, health permits, car, equipment, etc., results in a "take-home" of about $500/week or about $25,000/year.
Using the average of 2,080 hours/work year (40 hours per week), I'm netting almost $13/hour or about 1/4 of my "hourly rate".
Yes, my net DOES increase if I raise my weekly billable hours, but remember, if I'm working, I'm NOT marketing/selling, and if I'm not marketing/selling, I probably won't be "working"