Dec
Benefits of Working for a Company
A lot of web entrepreneurs are self employed and do not hold full-time jobs like I do. One of the overlooked benefits of working for a company is enrolling in the company’s 401k plan. I just recently became eligible for my company’s plan, and immediately signed up and started contributing money.
A 401k is a retirement plan. In simple terms, you put in a percent of your paycheck, and the company will match up to 3-5% of your paycheck. So if you get $2000 a paycheck, and you want to contribute $100 of that to your 401k, most companies will only match 3%, or in this case $60. It might not seem like a lot, but that’s free money that you can invest into mutual funds.
As you can see this can get very costly. That is why most small companies do not participate. I was reading a blog about business advice for small business owners, and they mention a study saying that only 14% of small business owners offer 401k’s to their employees. It a great blog really, and I’m glad I stumbled across it. They also have information on how to incorporate in Florida, where I live. This is a great way to help save yourself money when tax season comes along. I know a lot of web entrepreneurs also run LLCs… well they also go into the differences between an LLC and a INC. So if you’re looking at taking your online business to the next level, I definitely recommend giving Inc Paradise a look.
So anyways, I just wanted to talk about one of the differences in working for a company and being on your own. I’m not saying by working for yourself you can’t have a retirement plan… I’m just saying you don’t get a 3% match every paycheck plus a 100% payout every year 
Not only that but when you work for a company you can usually enroll in different insurance policies throught that company, dental, health, life. I workk for a small business and we have a good boss who sets us up pretty well.
That’s also true. I pay about $60 per month for my medical and dental coverage, while the company I work for probably pays like $300+ of it. If you are a sole proprietor, you have to buy your own health insurance which will run you around $300/month at least.
I think working for a company is an excellent idea starting out as it gives you the foundation on process and procedure as well as the benefits of being an employee (Medical, RRSP’s (I’m in Canada) etc..) then once your personal projects begin to match your income from your 9-5, you can branch away from the company; if your an excellent employee maybe they will allow you to continue working part-time which will allow you free time to pursue your business goals.