According to Wikipedia:
“An independent contractor is a natural person, business, or corporation that provides goods or services to another entity under terms specified in a contract or within a verbal agreement. Unlike an employee, an independent contractor does not work regularly for an employer but works as and when required, during which time he or she may be subject to law of agency. Independent contractors are usually paid on a freelance basis. Contractors often work through a limited company or franchise, which they themselves own, or may work through an umbrella company.”
According to the IRS:
“People such as doctors, dentists, veterinarians, lawyers, accountants, contractors, subcontractors, public stenographers, or auctioneers who are in an independent trade, business, or profession in which they offer their services to the general public are generally independent contractors. However, whether these people are independent contractors or employees depends on the facts in each case. The general rule is that an individual is an independent contractor if the payer has the right to control or direct only the result of the work and not what will be done and how it will be done. The earnings of a person who is working as an independent contractor are subject to Self-Employment Tax.”
So what does this mean in laymen terms?
An independent contractor/independent consultant/freelancer/knowledge worker/solopreneur/contract worker is someone who has the ability to use their unique skill set and talents on their own terms and for their own price.
With more and more people realizing the value in defining their own work-life schedule, independent contracting is rapidly becoming one of the fastest growing sectors of our labor market. More than 10 million independent contractors are currently working in the U.S. and this number is only going to grow.
UnLocked is dedicated to all things independent contracting, whether you are a consultant or an entity looking to hire contractors. Check out our homepage to learn more about the UnLocked tool that makes it easier for consultants and project managers to stay in touch and fill open gigs.