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Becoming an independent contractor is one of the many ways to be classified as self-employed. By definition, an independent contractor provides work or services on a contractual basis, whereas, self-employment is simply the act of earning money without operating within an employee-employer relationship.
Where independent contractors are usually jacks-of-all-trades, subcontractors most often specialize in a specific aspect of a project. Rather than being directly hired by the client, theyre called in by independent contractors to perform certain tasks, such as roofing and siding, electric work, plumbing, or tiling.
A subcontractor is a worker who is not your employee. You give a Form 1099 to a subcontractor showing the amounts you paid him. The subcontractor is responsible for keeping his or her own records and paying his or her own income and self-employment taxes.
Typically, a contractor works under a contractual agreement to provide services, labor or materials to complete a project. Subcontractors are businesses or individuals that carry out work for a contractor as part of the larger contracted project.
Subcontracting is the practice of assigning, or outsourcing, part of the obligations and tasks under a contract to another party known as a subcontractor. Subcontracting is especially prevalent in areas where complex projects are the norm, such as construction and information technology.
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Subcontractors report to the contractor, who is ultimately responsible to the client for their work. Therefore, the subcontractor is liable to the contractor, but not directly to the client.
Choosing to be a subcontractor can mean a reliable source of work without seeking new clients or being employed by a company. However, it can come with some docHub drawbacks pay may be less reliable, taxes may be more complicated and youll probably have less control over who you work with on a day-to-day basis.
Ultimately, subcontracting lets you focus on whats most important to you: your business. By hiring professionals to handle the tasks you are less good at, you can use your time and energy more strategically. You will have less to manage because your project will be coordinated by professionals who know their job.
A subcontractor is a worker who is not your employee. You give a Form 1099 to a subcontractor showing the amounts you paid him. The subcontractor is responsible for keeping his or her own records and paying his or her own income and self-employment taxes.
Where independent contractors are usually jacks-of-all-trades, subcontractors most often specialize in a specific aspect of a project. Rather than being directly hired by the client, theyre called in by independent contractors to perform certain tasks, such as roofing and siding, electric work, plumbing, or tiling.

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