Employees are usually paid by the hour, week, or month. Independent contractors are paid by the job. Employees usually have their business and travel expenses paid by their employer. Independent contractors pay their own expenses, although they may add them to their final bill for services. Employees usually have tools provided by their employer.
Independent contractors provide their own tools.
Employees usually do not invest in the business. Independent contractors have invested in their business. Profit for loss. Employees usually receive wages whether or not the business is making money. Independent contractors can make a profit or loss depending on income and expenses.