Add Formulas and Calculations Legal Indiana Independent Contractors Forms For Free

The general rule is that an individual is an independent contractor if the person for whom the services are performed has the right to control or direct only the result of the work and not what will be done and how it will be done. If you are an independent contractor, then you are self-employed.

An Employee receives instructions about when, where and how the work is to be performed. An Independent Contractor does the job his or her own way with few, if any, instructions as to the details or methods of the work.

A worker is more likely to be classified as an independent contractor if he or she provides managerial skills, including business acumen and judgment affecting the failure or success of the work being performed. Conversely, a lack of such opportunity generally indicates employee status.

A general business license is often required by a city or county for the privilege of doing business in that jurisdiction. (This license can go by other names, such as business privilege license or business tax registration.) This license applies to all types of businesses, not just contracting and handyman businesses.

You're still considered a business owner. There are levels to business owners. You can be a single person and be a self-employed business owner, or you can have multiple employees who work for you.

Becoming a licensed contractor in the state of Indiana is a process managed on the local level. Licensing requirements and fees vary based on city and county regulations as well as on job industry (i.e. residential or commercial contracting).

Contractors can deduct half of the self-employment tax from their net income. Since you're your own boss when you're self-employed, the IRS allows you to treat this tax as a business expense. Paperwork: Fill out a Schedule SE, then record half of the tax determined on Line 15 of your Schedule 1.

Does a 1099 contractor need a business license? Whether you need a business license as an independent contractor depends on your state and local laws. Most state laws don't require independent contractors to have a business license, except for Alaska and Washington state.

ABC states include Alaska, Arkansas, California, Connecticut, Delaware, Georgia, Hawaii, Illinois, Indiana, Kansa, Louisiana, Maine, Maryland, Massachusetts, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, Ohio, Oregon, Tennessee, Utah, Vermont, Washington, and West Virginia.