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What are some risks of freelancing?

Asked by Anonymous Sep 02, 2026 0 views 1 answers
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Answered Sep 02, 2026

Freelancing offers professional flexibility but exposes independent contractors to significant financial and operational risks, including unpredictable income streams, irregular cash flow cycles, and a total lack of corporate employment benefits such as health insurance, paid leave, and retirement contributions. Additionally, freelancers face risks related to non-paying clients, scope creep without additional compensation, intense global market competition, and the administrative burden of self-employment tax compliance.

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