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Table of Contents:An independent contractor is a freelance worker, consultant, or specialist that a company hires to carry out an essential, temporary job on their behalf.
The worker in question is contracted by the business on a short-term basis for however long it takes to complete the job as agreed.
These freelance workers differ from regular full-time employees as they will often complete their own tax forms, own their own tools, and work for numerous clients.
They will also not be entitled to the other usual employee benefits, although they may receive reasonable compensation for any expenses incurred.
There are many different types of independent contractors that can be hired by enterprises. These cover every type of industry and can vary greatly in terms of function or capabilities.
Below are some of the most popular independent contractor professions, most of which have already existed for many decades:
Due to the era of digitalization, many new types of jobs have come into existence in recent years. With the advent of innovative technologies and different societal trends, there are more possibilities for people that want to be independent contractors than ever before.
In the following list, you can find examples of the modern independent contractor jobs that are currently most trending:
The contract signed between a contractor and their client is known as an Independent Contractor Agreement. This legal document is designed to outline the core elements of the transaction between the hiring client and the contractor.
An Independent Contractor Agreement can also be known as a:
If the flexibility and freedom of being self-employed appeals to you personally, you may consider becoming an independent contractor. There are however a few important steps that you’ll need to complete in order to do so.
First of all you’ll have to register your new business with your local state. Even if you’re working independently without additional staff, you must create a record of the business. That means choosing a name for your new enterprise, getting a business license, registering as an LLC or as an S-Corp as necessary, and writing a business plan.
Once you’re properly set-up with the correct credentials and you’ve created a business bank account, you’ll then be able to start working with clients. You can do this by advertising your services locally or building up a strong reputation through your networks or word of mouth.
Companies and individuals often hire independent contractors when they require a service that they cannot perform without outside help. The process of choosing and recruiting a contractor is a relatively straightforward procedure.
Generally, the hiring process for independent contractors follows these steps:
It’s essential to be specific when writing a Contractor Agreement. The final result will be a binding legal contract between you and your client or contractor. The details should be clear and comprehensible so that they can be easily understood.
To make all the terms and conditions of the deal extra explicit, write in full sentences on the template. You should also avoid ambiguous terms and abbreviations that could lead to misunderstandings and possible legal challenges.
Additionally, make sure to use consistent terminology. Don’t refer to parties by their names in clauses and when describing additional terms. Instead, use established contractual terms, such as ‘Client’ or ‘Contractor’.
A completed Contractor Agreement explains the most important features of what has been agreed upon.
Doing so creates a record of what services need to be done and how the freelancer will be compensated for their work. The terms of the contract will stipulate elements of the deal such as:
It’s often difficult to perfectly envision completed Contractor Agreement templates before creating one for yourself. Review our Independent Contractor Agreement sample before you begin, to make the process of writing your own document more simple and to give you a better idea of what your final draft should look like.
