So what’s the difference between a freelancer and an entrepreneur/business owner you ask?  The terms seem to be use the terms interchangeably but they are different.

Some start off as a freelancer before becoming a business owner which is actually a smart ideal.  Doing so helps you learn and grow and figure out exactly what it is you want and need to be doing and how to go about it.  Freelancing can be good for networking and learning new skills as well as what other people need. Freelancing can definitely evolve into business owner.

Freelancers typically have a skill that they exchange for money. Business owners have an actual business where they have to take on such tasks as branding, marketing, and so on.  Being a business owner is riskier but the rewards can be great.

Both freelancers and self-employed small business owners will pay self-employment tax to the IRS.