Contracting with independent contractors, such as consultants, attorneys and other specialists and uniquely skilled professionals, is a great way to tackle important projects that require specific expertise and in situations where hiring an employee is not an option, or at least is not the best option. Moreover, a strong relationship with an independent contractor can span years and provide a major boost to your business. However, it's essential to build these relationships from a strong foundation and to have legally compliant documents defining and managing the relationship.
To avoid misunderstandings and ensure that the partnership is fruitful for both sides, a clear, comprehensive independent contractor agreement is a necessity. There are many rules and regulations that surround and dictate the relationship between a small business owner and an independent contractor. In fact, it is not enough for the business owner and the contactor to simply agree that the relationship is to be categorized as a contractor relationship.
There are requirements that must be met to be legally compliant in defining a worker as an independent contractor as opposed to an employee, and while in numerous situations it is readily apparent that a person is being engaged to work as an independent contractor, in many other situations that line between independent contractor and employee is not so obvious. Research information and get templates and guidelines that will help you craft your own independent contractor agreement.