Difference between Freelancer and Independent Contractor

Key difference: The primary difference between the two is the fact that while a freelancer is nearly always an individual person, an independent contractor can be a person, a company, a business, or a corporation. It can unofficially be said that a freelancer is a type of independent contractor.

The terms Freelancer and Independent Contractor can be quite confusing as at first glance they look to be identical. After all, both work independently and are hired by companies to do work on their behalf. However, they are difference from employees, in the manner that they don’t work for the companies directly, but instead a have business – client relationship with them.

However, there are certain differences between a freelancer and independent contractor, even though they may be subtle and not noticeable at first glance. The primary difference between the two is the fact that while a freelancer is nearly always an individual person, an independent contractor can be a person, a company, a business, or a corporation.

Still, the process would be the same; both would be hired by another person or company to do some work on their behalf, for which they would be paid. This person or company cannot regulate their work or tell them how or when to do the said work. They would provide a set of expectation and guidelines that they expect to meet and the freelancer or independent contractor would have to meet them. However, the how of the situation is left to freelancer or independent contractor.

It can unofficially be said that a freelancer is a type of independent contractor. Doctors, dentists, veterinarians, lawyers and a host of other professionals who own their own businesses are labeled as independent contractors. This also includes freelancers, such as freelance writers, editors, copywriters, designers, etc.

However, for the most part the terms are used interchangeably and do tend to mean the same thing in common parlance. In fact, in most legal matters, including taxation, freelancers are considered and treated as independent contractors.

Comparison between Freelancer and Independent Contractor:

	Freelancer	Independent Contractor
Description	A person who is hired by the company who do some work in return for money	A person, business, or corporation who is hired by the company on the basis of contract pay
Type	Type of independent contractor	Type of worker
Employment	Self-employed	Self-employed
Source of income	Proceeds from each project	Proceeds from each project
Employer	Can work with various companies at any given time	Can work with various companies at any given time
Benefits	No employment or unemployment benefits	No employment or unemployment benefits
Work hours	Set by self	Set by self
Overtime	Only if paid by the hour	Unpaid for overtime
Location	Works out of their own home or office	Works out of their own home or office
Control	Maintains control over their own work but must meet the demands and requirements of the client	Maintains control over their own work
Relationship	Has a business – client relationship with the company	Has a business – client relationship with the company
Examples	Freelance writers, editors, copywriters, designers, etc.	Doctors, dentists, veterinarians, lawyers, freelancers, etc.

Reference: Wikipedia (Freelancer and Independent Contractor),
Business Dictionary (Freelancer and Independent Contractor), Investopedia, The Balance
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