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The most common business organizations for Independent Contractors include C-corporation, S-Corporation, Partnership, Limited Partnership (LP), Limited Liability Partnership (LLP), Limited Liability Company (LLC), and Sole Proprietorship.
The general rule regarding independent contractors states that a person who hires an independent contractor cannot be held vicariously liable for the wrongdoing of the independent contractor. (NYPRAC-TORTS § ).
Every independent contractor agreement should feature an indemnity clause. The purpose of this clause is to ensure that the independent contractor will be held liable for any damage or injury resulting from the independent contractor's work performed under the contract.
Becoming an independent contractor is one of the many ways to be classified as self-employed. By definition, an independent contractor provides work or services on a contractual basis, whereas, self-employment is simply the act of earning money without operating within an employee-employer relationship.
The Utah Workers' Compensation Act defines an independent contractor as "any person engaged in the performance of any work for another who, while so engaged, is (A) independent of the employer in all that pertains to the execution of the work; (B) not subject to the routine rule or control of the employer; (C) engaged
Every independent contractor is a business owner. You run a business even if you are your only employee and you don't have a company name. There are significant differences, however, between a business that's just you as an independent contractor and running a company with employees and a registered name.
What should be included in a Contractor Agreement?Statement of Relationship.Project Description.Payment and Billing Terms.Responsibilities of Each Party.Project Timeline and Deadlines.Termination Conditions.Nondisclosure Terms, and Confidentiality and Non-Compete Clauses.
All businesses in Utah are required by law to register with the Utah Department of Commerce either as a "DBA" (Doing Business As), corporation, limited liability company or limited partnership. Businesses are also required to obtain a business license from the city or county in which they are located.
Yes! It's true that many self-employed individuals, especially those who work from home, never get a business license in Utah. But if your local government finds out that you're running an unlicensed business, you might be fined, or even be prevented from doing business until you obtain the license.
Simply put, being an independent contractor is one way to be self-employed. Being self-employed means that you earn money but don't work as an employee for someone else.