An independent contractor performs a specific service described in a contact. Example: consultants and auditors are example of independent contractors who provide a contracted service to a business. Employee, commits to an employer in an ongoing relationship. A dependent contactor operates a separate business, but is more like an employee operating in an ongoing dependent relationship with one employer. A consulting firm offering services exclusively to another firm over a period of years would qualify as a dependent contractor, and when those services involve arranging contracts with other, they are acting as agents. An agent is someone who represents another person (principal) in dealings with a third party. Employees and dependent and independent contractors can find themselves acting as agents depending on the nature of their duties. Travel and insurance agents are examples of independent contractors acting as agents, whereas a store clerk or a restaurant server is examples of employees acting as agents.