An individual that is an independent contractor fills the following roles:
  • The independent contractor will work with a number of clients.
  • The independent contractor's role is to accomplish a final result and it's the independent contractor who will determine the best way to achieve that result. The independent contractor will define what the agreed upon "result" is in a contract with your customer.
  • The independent contractor pays his/her own taxes and files the required government forms.
  • A city license, business license, and a fictitious name or dba statement will be obtained by the independent contractor. Also, the independent contractor must obtain any necessary permits.
  • Social Security taxes are the sole responsibility of the independent contractor.
  • The independent contractor must obtain his/her own benefits including workers' compensation, disability, etc. The independent contractor is not entitled to any typical employee benefits from any government agency.
  • Independent contractor agreements traditionally provide professional liability coverage.


Contractor Payrolling | IRS 20-point Checklist | 1099, W-2 and the IRS | A True Contractor | Does Incorporation Matter? | What Interests the IRS? | Fines and Ramifications | Common Myths


NOTICE: Accounting Partners has provided the content of this page for general informational purposes only. You should not substitute this information for personal consultation with a qualified professional in the field, nor should you rely upon this information in taking any action. No attorney-client relationship will be created through your use of this Web site, nor from any response from or conversation with Accounting Partners' Legal Department.
» back to top