State two costs of leaving paid employment to start your own business?

Other answer:

Start up funding for the business
Loss of income from previous job
Health care needs
Extra mental stress while the transition is happening
401k transfer into an IRA or ROTH
Higher taxes through self-employment tax.

No worker's compensation, no unemployment benefits.

Obviously you'll lose any employer-provided benefits in addition to payroll costs.

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Brian Wesley:
Company provided Health Insurance
Company funded and matched 401K
a license to operate the business
costs of establishing a place of business