About Working as an Independent Contractor

While seeking and employing alternative work arrangements in response to economic, technological and social changes, workers with an entrepreneurial spirit and wise U.S. employers have created more opportunities for independent contractors than ever before.

If you're the type of person who likes to settle in and dislikes ever-changing working conditions, then a so-called "permanent" job might suit you better. But if you're the adventurous, entrepreneurial type who likes new challenges, then working as an independent contractor might be right for you.

Independent contractors are sometimes called ICs, consultants, freelances, free agents and just contractors. Regardless, all are self-employed for tax reasons in the U.S. and essentially the same in practice.

But, speaking of tax reasons, the IRS has only two distinctions: independent contractor or employee. More about that follows.

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