Although it may sometimes be a bit of a grey area, an independent contractor is generally someone who uses their own equipment or supplies to provide services for pay to other individuals or companies. An independent contractor is also typically hired on a project-by-project basis. An independent contractor faces a unique set of challenges and liabilities regarding some things an employee would otherwise not. For example, as an independent contractor, there is no withholding in your paycheck for federal income tax, social security, retirement savings or medicare. For this reason, and many others, creating a limited liability company to operate under may be an extremely beneficial move to make.
As attorneys who have been employees and independent contractors, to owning our own business, we have a unique legal, and personal, perspective, in advising our clients in terms of the pros and cons of being an independent contractor. If you are new to the independent contractor world, or are thinking about venturing out on your own, give us a call. We'll help you fill in all the gaps so you can work at a coffee shop in Seattle, or Morocco.