Need lawyer/business help - independent contractor or not?

[acehistr8]

I am just finishing up a short contracting stint and deciding between two firms to work for as a full time independent contractor. In considering the first firm, while they hire as a fully independent contractor, they control where I work (in this case on site at one of two clients) though not when I work.

I thought one of the few things I remembered from a business law class was an independent contractor situation only exists when I as the IC control where and when I work, though not what work gets done. Do any lawyers out there forsee tax problems/implications in a situation like this, where I am getting paid as an IC, not receiving benefits (which is fine by me, since I get paid more and dont need all the benefits anyway), but by the IRS definition would be an employee? Anything I need to be worried about?

 

[countinguy]

Not a lawyer here, but self employed for 15 yrs.

U are an independent contractor as long as u are not told what time to be at work and what time to go home. What days of the week u work for them etc. As an independent contractor u schedule the time and days u want to work on the job, nobody tells u when to be there, if they do they need to be paying your social security because u are an employee for them!! They own u if they have that much control on u. Also just because u r being told where to work u are still a contractor.

Just my opinion from my work experiences!
Countinguy

 

[countinguy]

One more thing, the only prob u will have is u have to pay all of your social security. and u need ur own workmans comp and liability insurance.

I myself incorporated and put myself on a salary so I would not have to pay so much social security taxes. Just an idea!!

My buddy took my idea last year and saved him $4k from previous years taxes w/same income.

 

[acehistr8]

Thanks this is just the kind of info I need.

The firm in question sets the place I work, the general hours I must work as well as the dress code. To me, this violates what the IRS decries an IC to be, which is someone who has full control over the physical aspects of the work. Again, I dont really know if this is going to be a problem or not.

To me, I would rather not be an employee, as it typically means a lower salary to justify a number of benefits I dont need right now. For the time being I can get BC/BS PPO coverage for $140/mo. When I get married next year I will be eligible to be on my wifes health policy which at her firm is fantastic. So really for me my benefits needs are minimal.

It appears I have no need to be an employee, but my question really was one of liability in case a client sues us for work I did. Typically they can wipe there hands and say "Hey he's an IC, deal with him, we want nothing to do with it." At which point I can go to court and point out that obviously I was an employee and they were skirting the issue.