How to hire independent contractors

I own a small technology company, and I would like to hire college graduates, as independent contractors to design my products. I was wondering, how exactly do I pay independent contractors, as well as what type of taxes do I pay for them? How do I file with the IRS, and more importantly, how does one become an independent contractor? for example, if I find someone I like, who I would like to hire as an independent contractor, and they are not already, what sort of process do we have to do? Do I just hire them as a independent contractor? Do they have to create some sort of company, or file some sort of thing with someone (like getting TIN)? Thank you, your help will be much appreciated.