A lot of different words get thrown around in business such as freelancers, independent contractor, and gig workers. I get comments under All Up In Yo’ Business epsiodes (which you should subscribe to here) about these roles and their possible differences. So, what is the difference between all these roles? Thing is, there is nothing different. That’s right. Legally speaking, they are all the same thing. Basically all ways of saying “I’m not an employee.” Of course, some roles are used more depending on the context. Typically you’ll hear “gig worker” when referring to those who drive for Lyft or Uber. Or we may use “side hustle ” for those who do work on a platform like Upwork. However, in the legal in the tax world, they all mean the same thing.
Stick with me as I break this down a bit further. If you perform a service for someone else whether it’s a person or business, you’re one of two things:
- An employee of that person.
- Or you’re an independent contractor.
This isn’t always the case. There are some situations where you may be considered something else but for the most part, you’re an employee or independent contractor. And if you’re an independent contractor you are considered self-employed. Take me, for example, I am a lawyer and I own my own law practice. SO of course I consider myself to be self-employed. Though when I do legal work for my clients, I’m doing so as an independent contractor for my clients because I’m not their employee. But I could call myself a “freelance lawyer” or even a “gig lawyer” if I wanted to. They both mean the same thing: an employee of my client.
Tune in to this week’s episode of All Up In Yo’ Business to learn more about these roles. And be sure to subscribe to our YouTube channel for more All Up In Yo’ Business!
Want more information to help with your business? Check out: How To Save Thousands on Business Taxes in 2021.