I've been on both sides of this fence:
I was in business for 20 years (1978-1998), then took up an offer to merge with one of my customers, under a 5-year contract. My pay and benefits were all spelled out, and I would continue to service all my existing customers under the new company. I even got the right to take the van home every night, thus eliminating the need to own and maintain a vehicle for commuting.
Basically, I was going to continue doing what I like to do best, and that is the actual electrical work. The company was supposed to handle things like finding and hiring the help, paperwork, payroll, taxes, purchasing, etc.
This arrangement worked great for about 2 years, after which things started to get wierd. The third year, many of my terms and conditions were altered without my consent, and it appeared to me that they wanted me to quit. By the end of the year, I had enough, and left them to go back into business on my own.
They had failed to honor enough terms of our agreement that I was able to start my own business again without having to worry about any legal problems that might develop (non-compete, etc).
Turns out it was the best move I ever made. My time working for another company showed me many things that I should be doing as a businessman. It also taught me many things not to do as I could see them digging their own grave, but they failed to heed any of my advice or warnings when I was there.
Now it's 5 years later, and I am going strong with more work than we can handle, and they are essentially out of business.
While my experience is unique, the best thing I could offer to anyone considering their own business is be sure you devote enough time and resources to the business end of your company. You will have many long evenings of paperwork, preparing and filing taxes, worker's comp, preparing estimates, etc. Sometimes I wonder if maybe I should work somewhere else again, then a large check arrives and enhances my bank balance considerably. :grin: