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Doing Work as an Independent Contractor: How to Protect Yourself and Price Your ServicesProtect your social security number.Have a clearly defined scope of work and contract in place with clients.Get general/professional liability insurance.Consider incorporating or creating a limited liability company (LLC).More items...?
Employment and labor law may be explained as a method for protecting workers from labor monopsony; because independent contracts are not subject to labor monopsony, they do not require such protection, and in fact may impose costs on others if granted it.
Cons of Independent Contracting Employers like contractors because they can avoid paying for taxes and benefits, and that means those costs fall entirely on independent contractors. Contractors must withhold their own federal, state, and local taxes. They may also have to submit quarterly estimated taxes to the IRS.
Protect Yourself When Hiring a ContractorGet Proof of Bonding, Licenses, and Insurance.Don't Base Your Decision Solely on Price.Ask for References.Avoid Paying Too Much Upfront.Secure a Written Contract.Be Wary of Pressure and Scare Tactics.Consider Hiring Specialized Pros for Additional Guidance.Go With Your Gut.
The State of Alaska requires all contractors to have a license before they begin working in the state. This is to protect consumers from being victimized by unscrupulous individuals or companies.
Contract work provides greater independence, it can give you more predictable control of your work, and for many people, greater job security than traditional full-time employment. However, you are responsible for your own taxes, contracts, benefits and vacations.
General liability insurance is essential for independent contractors because: It protects you and your business. Independent contractors have the same legal obligations and liability exposures as larger firms. They can be sued for damaging client property, causing bodily harm, or advertising injury.
Alaska Contractor Registration and Permitting RequirementsObtain and fill out a completed application packet.Submit a current copy of your State of Alaska Contractors License.Submit a copy of the required construction bond.Submit a copy of your Mechanical/Electrical Administrators License.Pay the $360 fee.
(a) Limited specialty is a specialty contractor classification limited to a field and scope of operations of specialty contracting for which an applicant is qualified other than any of the specialty contractor classifications listed and defined in this article.
If your independent contractor agreement contains a provision that allows the parties to terminate the relationship at any time, revise the agreement to include a notice provision with at least some kind of a notice period required for termination of the contract.