Independent Contractor vs Subcontractor

[Sean Salandy]

I don't know why I'm having a hard time differentiating the two. What is the difference between an Independent Contractor and a Subcontractor? Let's say I hire a general contractor but I decide to choose and pay my own electrician. Would that electrician be considered a subcontractor or and independent? (and does it matter?)

[Percy N.]

Typically "independent contractor" is a term used to differentiate from employees of a corporation (for tax and other reasons), so in this case it is likely that they are all independent contractors.

The benefit of hiring a GC is that they would source the sub-contractors and you only have to deal with and pay the GC, though it is a best practice to get lien waivers from sub-contractors as well.