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What is the difference between an independent contractor and an employee?



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One of the key things that you have whenever you start a business is, what am I going to do with new business with growth, things like that. Do I have the funds where I can hire an employee? If I do, that’s a very good way that you can get someone in there, train them in the way that you want them to operate, and immediately integrate them into your business. If you don’t have those funds, or if you need someone with special skills but you may not need them all the time to be at your work site, that would be the time when you would consider having an independent contractor.

When you have an independent contractor, you need to have a separate agreement with him or her that explains what the works going to be, what their hours are going to be like, letting them know that they can work onsite or off site. That is one of the keys with regard to an independent contractor is where the work is done. And then finally, one of the biggest considerations with an independent contractor is letting them know that whatever they create for you, is a work for hire and that you do, in fact, own the [inaudible] property rights in that work.