What is an independent contractor?
An independent contractor is a self-employed individual or business that provides services to clients on a project-by-project basis. Unlike employees, independent contractors are not considered part of the company's staff and are not entitled to benefits such as health insurance, paid time off, or retirement plans. Instead, they are responsible for their own taxes, insurance, and other expenses related to their work.
How do I become an independent contractor?
To become an independent contractor, you need to have a skill or service that you can offer to clients. This can be anything from writing and editing to web design and development. Once you have identified your skill, you can start marketing yourself to potential clients through networking, social media, and freelance job platforms. It's important to have a clear contract in place with your clients that outlines the scope of work, payment terms, and other important details.
What are the advantages of being an independent contractor?
One of the main advantages of being an independent contractor is the flexibility it offers. You have the freedom to choose your own projects and clients, set your own schedule, and work from anywhere. You also have the potential to earn more money than you would as an employee, as you can set your own rates and take on as much work as you can handle. Additionally, you can deduct business expenses on your taxes, which can help reduce your overall tax burden.
What are the disadvantages of being an independent contractor?
One of the main disadvantages of being an independent contractor is the lack of job security. You are not guaranteed a steady stream of work, and if you lose a client, you may have to scramble to find new ones. You are also responsible for your own taxes, insurance, and other expenses, which can be a significant financial burden. Additionally, you may not be eligible for certain benefits that employees receive, such as health insurance and retirement plans.
Nick Simpson
Founder @ WorkMade
I started working for myself at 9. My first tax bill showed up at 14. I didn’t understand it, and nobody around me could really explain it. If you’ve been there, you get it. Twenty years later, after creative directing for brands in New York and buying and selling a few companies, I kept seeing the same thing: smart, talented people losing money to a system that wasn’t built for how they work. That’s why I built WorkMade. Not to make taxes “easier to understand” but to make them disappear into the background, so you can get on with your life.