Independent Contractor Vs. Freelancer: What’s The Difference?

There often needs to be more clarity in people’s minds about the terms independent contractor vs. freelancer. Both describe self-employed individuals, yet each depicts a unique client-service provider relationship. An independent contractor usually works with a single client for a longer-term project, while a freelancer juggles diverse projects from multiple clients over shorter durations.

With our robust expertise in employment law matters, we stand uniquely positioned to elucidate these differences, aid you in determining which category best suits your situation, or guide you through any legal issues that may arise. You’re entitled to fair practice, whether you’re an independent contractor or freelancer. Our commitment at Sirmabekian Law Firm is to ensure you benefit from that by championing your rights and providing the legal counsel you need.

Scope of Work

An independent contractor works primarily with a single client at a time, dedicating their time and efforts toward fulfilling a specified project outcome. Their scope is directly tied to their signed contracts, performing solely within their defined parameters. They are often sought in particular industries known for the specialized nature of their work, such as construction. Meanwhile, a freelancer tackles a broader range of responsibilities, often across various fields. They are akin to jacks of all trades, offering multiple services distinctly per client needs. They manage their responsibilities concurrently, often serving several clients simultaneously.

Contractual Relationships and Duration

Independent contractors engage in professional relationships governed by structured, long-term contracts. The contracts explicitly spell out start and end dates and articulate job duties in precise terms. Penalty clauses for non-compliance are frequently a part of these contracts. Freelancers operate on the opposite side of the spectrum. Their contracts are generally less demanding, offering ease in terms and duration. These agreement terms can vary greatly depending on the project and client. Their contracts are typically short-term, making it easier for freelancers to respond quickly to new opportunities.

Tax Treatment and Financial Responsibilities

Independent contractors are responsible for remitting their taxes directly. They consider overall earnings and possible deductions and set aside tax payments on their own. This financial responsibility increases their workload, requiring them to be aware of tax return deadlines and skilled in managing their financial affairs. Freelancers mirror this scenario as they, too, are solely responsible for their tax duties. They act as their own CFOs, with added stress during tax season, to accurately calculate and pay their tax obligations.

Level of Control

Independent contractors have control over how their work gets done to a significant extent. Even though project outcomes bind them, they decide the methods, tools, and processes necessary for delivery. Freelancers enjoy the highest level of control. They dictate the work they accept, define their timetables, and how they deliver their services. They have full authority over their business decisions, making them entirely autonomous in their roles.

Nature of Client Relationships

Even though they are not the company’s employees, they retain a considerable presence in the business environment because their role is significant due to the contract. On the other hand, the world of a freelancer is full of short-lived yet impactful interactions. They usually don’t blend into a client’s business as independent contractors might do. They synchronize with their clients temporarily, fulfilling specific needs before moving on to the next project and client.

Allow Sirmabekian Law Firm to guide your journey. Contact us today and confidently set forth your future as a freelance or independent contractor. Whether it’s contract negotiation, asserting your rights, or simply grasping these distinctions, we stand ready to support you. With the power of knowledge and exceptional legal assistance from us, you’re well-equipped to make informed decisions in your professional life.