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To get started, follow these five steps on how to become an independent contractor: Pick your vocation and obtain the necessary licensing. Focus on branding. Smooth out the specifics with a business plan. Open a business account and stay on top of taxes. Establish a winning marketing strategy.
How to Be an Independent Contractor Step 1) Name Your Business. ... Step 2) Register Your Business Entity. ... Step 3) Obtain a Contractor's License. ... Step 4) Open Your Business Bank Account. ... Step 5) Start Marketing.
The state of California doesn't require a business license to operate. But your city or county might. Depending on the goods or services you sell, you might also need a professional or occupational license.
An individual is an independent contractor in California only if they meet all three (3) requirements of the test: The worker remains free from managerial direction and control related to the worker's performance. The worker performs duties outside the scope of the company's course of business.
California law generally uses the ABC test to distinguish between employees and independent contractors. This test looks past any contractual provisions between the company and the worker that define the worker's status.