Q&A

Can a company have more than one independent contractor?

Can a company have more than one independent contractor?

Some companies are able to have two groups of workers do essentially the same type of work-such as independent-contractor sales agents and employee sales agents. However, business lawyers need to be very careful in helping clients navigate these waters.

Can a client sue an independent contractor without a contract?

Without a written contract, your client is virtually doomed to fail in any dispute over the status of the worker, no matter how strong the client’s independent-contractor facts may be.

How does my husband support my consulting business?

For example, your husband supports your consulting business by handling the books; perhaps his involvement is only 15%. This is converse to community property states which generally divide things equally (whoever thought a marriage was a 50-50 relationship was fooled long ago, but here we are).

Can a husband and wife own a LLC?

A husband and wife owning an LLC in a community property state can be considered one owner, or in the case of an LLC, one member and therefore become a disregarded entity as opposed to a partnership. The business activities are then reported on Schedule C of your Form 1040.

Some companies are able to have two groups of workers do essentially the same type of work-such as independent-contractor sales agents and employee sales agents. However, business lawyers need to be very careful in helping clients navigate these waters.

How are sales people employees or independent contractors?

There was no requirement that the salesmen submit written reports, although some submitted these reports voluntarily. The salesmen were paid by commission, but they could take a draw against next week’s commission; commission indicates independent contractor status, but the draw indicated salary and employee status.

How to work with independent sales reps, Inc.?

Working With Independent Sales Reps: The Direct Selling Route. Companies like Uppercase Living use reps as direct sellers to demonstrate and ultimately sell products in high numbers. Not only is direct selling a cheap way to market and spread a product, but it can also help in the recruiting effort as well.

What are the hallmarks of an independent contractor?

One of the hallmarks of independent contractors is that they are required to supply their own tools, equipment, and supplies. Rev. Rul. 71-524, 1971-2 C.B. 346 ruled that a trucker working for a trucking company that leased vehicles (and provided maintenance) was an employee.

Can a sales person be an employee and an independent contractor?

Both employees and independent contractors can be paid commissions, in addition to or instead of a salary or contractual payments. A 2008 federal district court heard an Iowa case dealing with the status of a company selling livestock products and the classification of the salespeople as independent contractors.

What does it mean to be a self employed contractor?

Jean Murray, MBA, Ph.D., is an experienced business writer and teacher. She has written for The Balance on U.S. business law and taxes since 2008. If you are working for yourself, and if you aren’t an owner or employee of a corporation, you are an independent contractor. In other words, you are considered self-employed.

When do you become an independent contractor in the USA?

She has written for The Balance on U.S. business law and taxes since 2008. If you are working for yourself, and if you aren’t an owner or employee of a corporation, you are an independent contractor. In other words, you are considered self-employed.

Is it worth working with an independent sales rep?

Sure, you may have to dole out a little more commission for each sale. But it’s worth it if you want to test the market, or if your product will benefit from a demonstration, or your customers require constant explanation of new products. For this reason, independent sales reps work mostly for manufacturers, wholesalers, or technical companies.