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An independent contractor can itself be a business with employees; however, in most cases in the United States independent contractors operate as a sole proprietorship or single-member limited liability company. This means the independent contractor, as a business owner, incurs its own expenses to provide the contracted service, must acquire ...
Employees and independent contractors have very different benefits. Employees are entitled to the protection of wage and hour laws and are protected from discrimination and retaliation by employers. Employees may be legally entitled to family medical leave and benefits such as medical insurance and pension plans.
The independent contractor files a Form 1040, just like an employee. However, there is a significant difference in how income is reported for contractors. However, there is a significant ...
Limited Liability Corporation (LLC) ... To qualify for this legal structure, you must own an unincorporated business by yourself—usually independent contractors or self-employed individuals ...
It is important for employers to note whether someone working for them is an independent contractor or an employee. An employee is someone who is a paid worker for the employer. An independent contractor, on the other hand, contracts with a principal to produce a result and in the process, gets to determine how that result will be completed.
With jobs scarce and money tight these days, the prospect of working as an "Independent contractor," and getting a full paycheck with no big bites taken out for taxes and other obligatory expenses ...
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