---
title: "Who is an Independent Contractor? (USA)"
slug: "who-is-an-independent-contractor-us"
tags: ["selfemployed", "independentcontractor", "USA"]
updated: 2022-07-20T12:39:20Z
published: 2022-07-20T12:39:20Z
canonical: "resourceportal.antientropy.org/who-is-an-independent-contractor-us"
excludeFromExternalSearch: true
---

> ## Documentation Index
> Fetch the complete documentation index at: https://resourceportal.antientropy.org/llms.txt
> Use this file to discover all available pages before exploring further.

# Who is an Independent Contractor? (US)

In the U.S., Independent Contractors are often called:

- Self-employed person
- Sole proprietors
- Single-member LLCs
- 1099 employees

[The IRS](https://www.irs.gov/publications/p15a#en_US_2022_publink1000169466) has clear definitions on what constitutes an independent contractor. The general rule is that a worker is an independent contractor if the payer controls the result of the work but not how the work will be done. [Misclassifying a worker as an employee or independent contractor](/v1/docs/independent-contractor-guidance) has liabilities to a company, which include the potential loss of eligibility for unemployment protection and malpractice insurance protection.

#### **Independent Contractor Designations:**

- Provide independent, specialized, or requested services on a project or as-needed basis
- Pay their own Social Security and Medicare taxes
- Not eligible for unemployment insurance or workers' compensation
- Not eligible for statutory employment benefits
- Generally not covered by labor and employment laws
- The employer does not withhold or report taxes on an independent contractor’s services

Once you have established your employment needs, ensure you have determined what structure is best for your business for tax purposes, hiring needs, and future growth. There are several business structures with varying benefits; see the two most common [Sole Proprietorship](/v1/docs/sole-proprietor-vs-single-member-llc) and [Single-Member LLC](/v1/docs/sole-proprietor-vs-single-member-llc-usa) to determine which is best for you and how to register.

## Related

- [Single-Member LLC (US)](/sole-proprietor-vs-single-member-llc-usa.md)
- [Sole Proprietor (US)](/sole-proprietor-vs-single-member-llc.md)
- [Sole Proprietor vs Single Member LLC - What's the Difference? (US)](/sole-proprietor-vs-single-member-llc-whats-the-difference-usa.md)
- [Employer Independent Contractor Guidance](/independent-contractor-guidance.md)