Work with independent contractors on a win-win relationship. Independent contractors are here to stay, and every day, it is even more common to find them as people are increasingly looking for a side hustle. If you are a business owner, most likely, you have been in a place where you are unsure if you should hire an employee or an independent contractor. Well, that depends. Let’s start with, what is an independent contractor?
An independent contractor is a person or business that works for your company under a written or verbal agreement for a temporary amount of time. As a business owner, you have to differentiate your employees from your business contractors for tax purposes.
An independent contractor can be:
- Building contractors
So, should you hire an employee or an independent contractor?
Here are some advantages of hiring an independent contractor:
- Independent contractors tend to be very specialized in their field.
- You have the flexibility of paying by project only.
- There is a less legal risk by working with an independent contractor as they are not eligible for workers’ compensation or wrongful termination claims.
- They can also be less expensive.
On the other side, here are some disadvantages of working with an independent contractor:
- you have less control over their work.
- you are hiring short-term.
- There is no company loyalty.
- Your right to fire them depends on your written agreement.
Now that you know what an independent contractor is and the advantages and disadvantages of working with one, I am sure you will choose correctly the next time you need to cover a position. If your business operates in California, we can help you. We are an established and growing law firm that specializes in business litigation matters for businesses located in California and the Pacific. Call us now for a Strategy Session. We can talk about how we can help you to run your business without worrying about the underlying legal consequences. We can be reached at (714) 415-2007 or reserve your spot by clicking here.