What is a contractor?
A contractor is a self-employed person or business hired for specific work — paid per project, not on payroll. They control how the work gets done, handle their own taxes, and typically work for multiple clients. Misclassifying an employee as a contractor is one of the costliest mistakes a business can make.
In practice
A company hires a contractor to rebuild its website for a flat $15,000. She works from home, on her schedule, invoices on completion, and receives a 1099 in January.
Invoice as a contractor
Professional contractor invoices with your business details — free, no account.
Create an invoice — freeFrequently asked questions
Contractor vs. employee — what's the real test?
Control. If the company dictates when, where, and how you work, you're likely an employee regardless of the label. The IRS looks at behavioral and financial control.
Do contractors charge sales tax?
Sometimes — several states tax specific services. It depends on your state and trade; check your state revenue department before assuming.
How should a contractor invoice?
Per project or milestone, with clear line items, your business details, payment terms, and sequential numbering. Invoice promptly — contractors live on cash flow.