Independent Contractor Guide
Last updated October 16, 2026
Working as an independent contractor gives you freedom — and responsibility. Here are the essentials for running your remote career like a business.
1. Contractor vs. employee
As a contractor you run your own business: you choose how and when you work, use your own equipment, can serve multiple clients, and handle your own taxes and benefits. If a client controls your hours and methods like an employer would, discuss your status with them.
2. Always use a written agreement
- Scope of work and deliverables.
- Rate, billing schedule and payment method.
- Working hours, response times and timezone overlap.
- Confidentiality / NDA and who owns the work.
- Notice period and how either side can end the contract.
3. Setting your rates
Factor in your experience, skills, tools you pay for, internet and power backup, taxes and unpaid time off. Package services (for example "inbox management, 20 hrs/month") to make pricing clear. Review your rates every 6–12 months.
4. Invoicing and getting paid
Send numbered invoices with dates, hours or deliverables and payment terms. Use reputable platforms (such as Wise, PayPal, Payoneer or bank transfer). Consider a deposit for new clients and pause work if invoices go overdue.
5. Taxes and registration
You are usually responsible for declaring your own income. In the Philippines this may mean registering with the BIR as self-employed; US clients may ask non-US contractors for a W-8BEN form, and US contractors for a W-9. Check the rules where you live with a local accountant.
6. Protecting your scope and wellbeing
Log requests that fall outside your agreement and quote them separately. Set communication hours, keep a backup internet option, and keep records of your work and conversations.
7. Confidentiality
Never share client data, logins or NDA work publicly. Use VAStars passcode-protected links for sensitive case studies, and get written permission before naming a client.