Self-Employment means participants working for themselves rather than an employer.

Self-employment cannot include work done for political purposes. See 10 (Paid Employment).

To determine if someone is self-employed, use these guidelines:

N/A	Self-Employed	An Employee
Work Rules.	Set by self-employed individual.	Set by employer.
Work schedule.	Set by self-employed individual.	Set by employer.
Payment.	By the job or by units, such as number of sales or visits or deliveries, etc.	By the hour or time worked, even if job is not completed
Federal/State Taxes, FICA.	Not withheld from pay – self-employed individual pays.	Employer withholds from pay.
Number of clients/employers.	Multiple.	One Employer.
Location.	Multiple or owned by self-employed individual	Set by employer.
Risk.	Assumed by self-employed individual.	Assumed by employer.

Participants must have a business plan in order to include self-employment in their employment plans.

Include self-employment activities in the employment plan as long as there is a business plan in place or being developed.

The options for creating a business plan are:

Option 1: Using the MFIP Self Employment Business Plan (DHS-6200) (PDF).

The Standard Self Employment Business Plan (SEBP) was developed based on research on self- employment business plans and in consult with professionals, who have expertise in small business, therefore meets the requirement to seek assistance from an expert in small businesses. Examples can include:

· In-home product sales.

· Personal Services (massage, hair dresser, nail care, etc.).

· In-home child care.

· Handyman services.

· Accounting.

· Paper route.

· Housecleaning.

· Taxi or ride-sharing driver.

· Miscellaneous services.

Option 2: Connecting the participant to an individual or organization trained in helping people to develop business plans.

Organization	Contact Information
Small Business Development Centers of Minnesota.	Minnesota Department of Employment and Economic Development Small Business Development Centers.
SCORE.	South Metro SCORE.
Small Business Development Center at the University of St. Thomas	University of St. Thomas Opus College of Business Small Business Development Center.
Small Business Resource Guide provided by the U.S. Small Business Administration	U.S. Small Business Administration.
Small Business Administration’s Office of Native American Affairs: Resources to Help Native-Owned Small Businesses.	Office of Native American Affairs U.S. Small Business Administration.
The University of Minnesota Extension Service Extension offers business planning, loan consultation and other services for farm businesses.	University of Minnesota Extension.

Do not include self-employment as an employment plan activity, if a participant does not do 1 of the following:

· Develop a business plan.

· Use any available services to help develop a business plan.

Work with the participant to identify other ways to move toward greater self-sufficiency.

The reasons to accept a business plan for self-employment could include at least 1 of the following:

· A specialist from an agency listed above helped to develop the business plan.

· A designated staff person in the county or tribe responsible for administering MFIP approved the business plan. (Some counties appoint a staff person to review self-employment plans.)

· A business plan has a realistic forecast of earnings within 3-6 months and ultimately to provide enough income to be ineligible for MFIP.

Reject business plans that:

· Are incomplete and do not include a timeline, earning goals or specific steps to meeting those goals.

· Do not follow either the Self-Employment business form or were not done with the help of a small business specialist.

· Do not have an objective of profitability and enough income to move a family beyond the MFIP income limits.