Thread: Sole proprietorship hiring employee or independent contractor?
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Nov 24th, 2008 09:50 PM
#1
Sole proprietorship hiring employee or independent contractor?
I'm currently running my business by myself as a sole proprietorship, but I'm looking to bring someone in to help me when I need it. Most likely, this person would be an independent contractor (as they would not be needed every day) but I need to know the pros and cons of both. I tried looking online, but most of the information I found was for the US. Also, how do I go about paying an independent contractor?
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Nov 25th, 2008 08:33 AM
#2
To keep things short--you can save some money (because you're not responsible for certain payments), and you can save yourself from a variety of regulatory regimes. That trick is making sure the person is actually treated as an independent contractor in law (the line can be blurry). But if you're hiring a consultant who isn't there all the time, and depending on the nature of the work, it is probably doable.
Another method might be using an agency--I believe (I'm no employment lawyer), the agency is the employer, which might be useful for you.
As the name suggests, they sign a contract, but instead of being an "employment contract" they would sign a "consultation agreement" or perhaps just a plain old, independent contract.
It might be useful to be advised before hiring to avoid problems down the road.
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Nov 25th, 2008 10:09 PM
#3
Wow, thanks for the fantastic information. I've got some reading up to do now!
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