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How do I Become an Independent Contractor?

Nicole Madison
Nicole Madison
Nicole Madison
Nicole Madison

The steps to become an independent contractor are usually much the same as those for starting a business. In most cases, you will need to determine the types of services you will provide and figure out how to find clients. Depending on where you live, becoming an independent contractor means you will technically operate a business, so you may need a business license. You may also need to create a basic contract for those who wish to use your services. Once you have handled these basics, you will usually have to advertise your services or bid or apply for independent contractor projects.

Before you put forth the effort to become an independent contractor, it is a good idea to learn what being an independent contractor means. As an independent contractor, you will be a freelancer who is not employed by the companies that hire you. Instead, you will usually receive an independent contractor fee for the work you perform. As an independent contractor, you cannot expect those who hire you to calculate the taxes you owe or withhold them from the money you earn.

A person can seek an independent contractor job doing just about anything.
A person can seek an independent contractor job doing just about anything.

Generally, the first step you'll have to take to become an independent contractor is deciding the types of services you want to offer. You may choose based on your skills and interests as well as the need for the services you provide. For example, you may choose to become a freelance writer or editor or you may become a doula. If your interest is in helping people market their online businesses, you may become an Internet marketer instead. You may even work as an independent contractor by offering advice based on your area of expertise and experience.

An electrician may work as an independent contractor.
An electrician may work as an independent contractor.

Once you’ve determined the services you want to offer as an independent contractor, your next step may be the creation of a business plan. Essentially, you are starting a business, so you will need to include details about how you will raise start-up cash, operate your business, and reach out to potential clients. Your plans may change as you gain experience, but a business plan provides a basic blueprint from which you can begin. As you are planning your business, you may also do well to create a contract you can use for clients who wish to hire you.

An independent contractor may work as a technical writer writing instruction manuals.
An independent contractor may work as a technical writer writing instruction manuals.

You may also need a business license to become an independent contractor, though this may depend on the laws in your jurisdiction. Typically, obtaining a business license will require you to complete an application and pay a fee. You may also do well to learn whether your jurisdiction requires any additional licensing for the type of work you will perform.

Some research editors work as independent contractors for multiple employers.
Some research editors work as independent contractors for multiple employers.

After creating a viable business plan and securing the licensing that is required in your area, you may begin to look for clients who are in need of your services. You may implement an advertisement campaign to attract perspective clients, for instance. Many independent contractors also find it helpful to search job boards and freelance websites for projects. Additionally, networking opportunities may lead to referrals.

Nicole Madison
Nicole Madison

Nicole’s thirst for knowledge inspired her to become a WiseGEEK writer, and she focuses primarily on topics such as homeschooling, parenting, health, science, and business. When not writing or spending time with her four children, Nicole enjoys reading, camping, and going to the beach.

Learn more...
Nicole Madison
Nicole Madison

Nicole’s thirst for knowledge inspired her to become a WiseGEEK writer, and she focuses primarily on topics such as homeschooling, parenting, health, science, and business. When not writing or spending time with her four children, Nicole enjoys reading, camping, and going to the beach.

Learn more...

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    • A person can seek an independent contractor job doing just about anything.
      By: michaeljung
      A person can seek an independent contractor job doing just about anything.
    • An electrician may work as an independent contractor.
      By: auremar
      An electrician may work as an independent contractor.
    • An independent contractor may work as a technical writer writing instruction manuals.
      By: KostaKostov
      An independent contractor may work as a technical writer writing instruction manuals.
    • Some research editors work as independent contractors for multiple employers.
      By: antiksu
      Some research editors work as independent contractors for multiple employers.
    • Freelance photographers are a type of independent contractor.
      By: Mat Hayward
      Freelance photographers are a type of independent contractor.