In addition, an Independent Contractor works with an employer to perform a specific task within a specified time limit. Because an independent contractor is not obligated to work for only one party, he or she may accept work from a variety of clients in order to maximize the monetary incentives involved, rather than sticking to one firm or client.
An employee is a person hired by the employer, to work on a regular basis, in exchange for a fixed payment. On the other hand, an independent contractor is a self employed person who provides services to other entities for a fixed compensation.
An independent contractor agreement that is legally enforceable may eliminate misunderstandings, ambiguities, and ensure a seamless flow of work, therefore having one in writing is vital. In the case of a disagreement between the parties, it also acts as proof or evidence.

An auto mechanic who has a station license, a resale license, buys the parts necessary for the repairs, sets his or her own prices.