Don’t forget about the cost of taxes! At least in the U.S., you’ll most likely be responsible for the employer portion of the social security tax as well as the Medicare tax. In other words, just on those taxes alone your income is reduced by 15.3%. Add in state, federal, and local withholding tax as well and your expenses increase very quickly. Not to mention the fact that you have no employer to help foot the bill for your health insurance, offer paid vacation, or contribute to your retirement plan. You’re on your own for all those things — more reasons to charge more!