An independent contractor is an individual or business that provides goods or services  to another entity under terms specified in a contract or within a verbal agreement.  Unlike an employee, an independent contractor does not work regularly for an employer but works as and when required, during which time he or she may be subject to law of agency.  Independent contractors are typically paid on a freelance basis. Contractors often work through a limited company or franchise, which they themselves own, or may work through an umbrella company.  Contractors choose who they wish to work for and may perform work for several entities.