Hiring Contractors – Part 1
Independent Contractors or Independent Consultants are people who do work for your company who are not employees, corporations or LLCs. Hiring independent contractors is attractive to startups because it allows them to quickly bring on talent without the headache of setting up payroll and benefits. Independent contractors also make it easy to bring people onboard for as long or as little as needed without worrying about employment laws that apply to hiring and discharging of regular employees. Without the added expense of benefits, matching FICA payments, and perhaps even office space and equipment, independent contractors can offer real savings and cash flow benefits to a startup organization.
But there are some legal pitfalls to hiring independent contractors that most startups (and many established companies for that matter) don’t understand. This post is the first of a three part series that helps to explain some of those potential pitfalls, so that you can make an informed decision before hiring an independent contractor. Read more…