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If you are an independent contractor, then you are self-employed. The earnings of a person who is working as an independent contractor are subject to self-employment tax. To find out what your tax obligations are, visit the Self-Employed Individuals Tax Center.
An independent travel agent has her own at-home business. He works full-time or part-time. The travel agent partners with a host agency and earns commissions for all travel packages and deals sold. But before a person can join a host travel agency he must learn about the tourism and the travel industry.
Remember that an independent contractor is considered to be self-employed, so in effect, you are running your own one-person business. Any income that you earn as an independent contractor must be reported on Schedule C. You'll then pay income taxes on the total profit.
The general rule is that an individual is an independent contractor if the payer has the right to control or direct only the result of the work and not what will be done and how it will be done. If you are an independent contractor, then you are self-employed.
You are your own boss, akin to a contracted worker, and therefore are not technically an employee of any other agency. Obviously, you work in the field of travel, creating customized itineraries for trips by offering the best recommendations for every aspect along the way.
Becoming an independent contractor is one of the many ways to be classified as self-employed. By definition, an independent contractor provides work or services on a contractual basis, whereas, self-employment is simply the act of earning money without operating within an employee-employer relationship.
Travel agents are sales professionals that specialize in the selling of travel products. Unlike sales representatives who work for a specific travel vendor, such as a cruise line or hotel chain, travel agents and travel agencies are independent, picking and choosing the products and services that they prefer to sell.
Travel agents sell transportation, lodging, and entertainment activities to individuals and groups planning trips. Travel agents typically spend much of their day sitting, working on the phone and on the computer. Most travel agents work for travel agencies; many are self-employed.
You have to be able to think on your feet and be very organized. And there's a lot of competition out there, so you need to be good at marketing yourself. But if you're passionate about travel and have some people skills, then becoming a travel agent could definitely be worth it for you.
Simply put, being an independent contractor is one way to be self-employed. Being self-employed means that you earn money but don't work as an employee for someone else.