An independent contractor is a person or business that provides services to another entity under a contract. Unlike employees, independent contractors operate their own businesses and have more control over how they complete their work. They are typically hired for specific projects or tasks and are paid based on the terms of their agreement. Independent contractors are responsible for their own taxes, insurance, and benefits, which distinguishes them from traditional employees. Common examples of independent contractors include freelancers, consultants, and construction workers. This arrangement allows businesses to access specialized skills without the long-term commitment of hiring full-time staff.