Independent Contractor vs. Freelancer: What’s the Difference?

‍• Independent contractors and freelancers both fall under the self-employed category. Both tend to refer to an independent person who does work for a business.

• These terms aren’t officially recognized by the IRS, but they are commonly used, so it’s good to know the difference!

• Independent Contractors generally work for fewer clients and on long-term projects. They sign contracts that lay out exact job requirements, so they have less flexibility over their schedule.

• Freelancers generally work on short-term projects for multiple clients. They tend to have more freedom over their schedule and getting work done on their terms.

• Many self-employed people consider themselves both.

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Working for yourself can be exciting, liberating, and lucrative! If you take this leap, you likely have a valuable skill set and expertise to offer. You have the so-called “hard part” done!  Now time to cue the mini identity crisis: are you a freelancer or an independent contractor? What’s even the difference between the two? While these terms are often used interchangeably, there are some key differences, and understanding these differences will help you along the way, especially when pitching and accepting jobs from prospective clients.

‍Independent Contractor

‍An independent contractor is a self-employed person who does work for a client or company. They typically get hired for a long period of time (i.e., several months to a year) to work on a specific project or task, and it’s common that they work for one client at a time. Independent contractors always work under a contract that clearly outlines the project scope, job requirements, and pay. As a result, independent contractors have less flexibility over their working schedule; however, they aren’t considered full-time employees and aren’t entitled to company benefits.

‍Freelancer

‍A freelancer is also a self-employed individual who provides services to clients on a project-by-project basis. However, freelancers tend to have more flexibility in terms of the projects they take on and the clients they work with. They may specialize in a particular area, such as graphic design or writing. Freelancers tend to work on multiple, short-term client projects, whereas independent contractors will typically work with one client on a long-term basis. Freelancers are also responsible for their own taxes and benefits.

‍Key Differences

‍The main difference between independent contractors and freelancers is the degree of control and autonomy they have over their work. Independent contractors are typically contracted for a set period of time and have less flexibility in terms of the work they do and the clients they work with. Freelancers, on the other hand, have more flexibility and may work with a wider range of clients on a project-by-project basis.

Key Similarities

‍Both freelancers and contractors are independent. Meaning they are responsible for managing their own income, benefits, expenses and taxes. Both get the advantages of flexibility and personal freedom, as well as the responsibilities.

‍Need help with your taxes?

‍WorkMade is built to help both freelancers, and independent contractors automate their taxes.