We've had a home business for almost 20 years, by choice. There are definitely advantages and disadvantages, just as if you work for someone else. We prefer to have our own home business and we've really never questioned it.
There is a lot of homework regarding employees if you plan to hire, insurances including general liability, professional liability and workman's comp. I would also prepare by talking with a CPA because your income tax structure is different for self-employed than it is as an employee.
The most employees we've had besides the owner is 2, for a total of 3. We had to check our zoning regs to see if we could have employees coming to the home (which we can as long as we provide off-street parking) but our zoning does not allow customers to come to our home. We are also not allowed visible signage. It all works for us because our business is a service business where we go to other properties.
The negatives we've found: (and it's because it is our choice how we maintain the business) is that we are not as free to leave for vacation for much more than a long weekend because we are extremely busy and my partner is very hands on. Therefore we both pick a week now and then and go do our own thing. And for me, I tell people I live in an office because my living room contains 3 desks, 3 computers, 2 printers and 2 large file cabinets and some equipment. I retired a couple of years ago and my better half is retiring this year, so hopefully I'll get my house back!
There are some other caveats owning a business, but it's more to do with how you personally choose to run a business, your work ethics and stamina.
I'd do it again in a heartbeat!