Subcontractor: definition, example, and why it matters

Always collect a W-9, certificate of insurance, and license proof before letting a sub on a job site. Pay subs only after collecting from the customer to protect cash flow.

• Short definition. A specialist hired by a general contractor to perform a portion of the work.
• Category. Subcontractor is a trades term used by service businesses when billing customers.
• How Glo Invoice handles it. Glo Invoice builds subcontractor into the invoice itself, so you don't track it on paper or in a spreadsheet.

Frequently asked questions

What does subcontractor mean?

Always collect a W-9, certificate of insurance, and license proof before letting a sub on a job site. Pay subs only after collecting from the customer to protect cash flow.

Related terms

• Independent contractor — A self-employed person hired to perform specific work under contract.
• 1099-NEC / 1099-MISC — US tax forms reporting payments to independent contractors and other non-employees.
• W-9 form — A US tax form independent contractors complete so payers can issue them a 1099.