What Are Some State Laws I Should Consider When Starting My Business?
You definitely have anti-discriminatory laws for hiring and firing, so you need to be cognizant of that. You have laws pertaining to your particular business. You might have licensing issues, like real estate or nursing licensing. You have laws that will affect your clientele, which will affect you as well. The advice of local counsel is very important. There can be laws regarding vendors and bidding and those will be helpful to know prior to executing a contract.
What Is The Difference Between An Independent Contractor And An Employee?
An independent contractor is paid differently than an employee. The independent contractor is responsible for paying taxes on their income and not the business owner. When you hire a person as an employee, the business has to take a certain percentage out of their pay for taxes and make sure that it gets paid to the government.
Then, you have questions of liability. If you have an employee working for you and they commit an intentional tort or a non-intentional tort, these are actionable criminal offenses. In some instances, the business can be held financially responsible. Liability is much less with an independent contractor than with an employee.
An independent contractor owns their own business. You can have contract over them and you can terminate your relationship with them but you cannot control how they work. They do not sign an employee policy and you do not provide them benefits.
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