Individual Contractor: This category is for individual contractors who are not operating under a formal business entity. They work as sole proprietors, freelancers, or independent contractors in their personal capacity. For Individual Contractors, they'll need their Social Security Number (SSN).
Business Contractor: This category is for contractors who represent a formal business entity, such as an LLC or corporation. This includes businesses that provide contract services rather than individuals. For Business Contractors, they'll need their Employer Identification Number (EIN).