Time comes for every successful home-based business owner to realize that they can no longer do it all - to the rescue comes the contractors.

One technique to increase your staff for a particular project is to hire an independent contractor. An independent contractor is someone who works on a temporary basis rather than a permanent basis. Usually, a contractor is hired for a specific task, or for a fixed amount of time. Furthermore, these people are in business for themselves and while they work for you, they are not your employees. They are also responsible in paying their taxes, and take care of their own health benefits as well.

The main advantage of an independent contractor opposed to employees is cost. You get the same, sometimes even better service from an independent contractor for a lower rate, than you can from employees for the simple reason that you don't have to incur all the add on expenses that comes with hiring an employee.

How do you hire independent contractors? Where do you begin. Below are some tips which can be useful for in hiring an independent contractor.

Know Who is Eligible as a Contractor - Since the tax requirement for contractors are different, it is vital that you know what comprises a contractor legally. There are ways of determining if a worker is an employee or an independent contractor like the common law "control" test followed by the IRS and the terms set by the FLSA or the Fair Labor Standards Act.