The 1099 – Employees vs. Independent Contractors

Our recommendation is that you form a Corporation when dealing with Independent Contractors.

Generally, an “employee” is a person who is hired by another person or business (an “employer”) for a wage or fixed payment in exchange for personal services and who does not provide the services as part of an independent business. This definition can be contrasted with an “independent contractor” who is a person or entity who, as part of an independent business, becomes obligated to provide goods and/or services for a price. For example, an expert in computer systems might provide services to other businesses as a “consultant.”

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