The Blueprint of LLC Hiring an Independent Contractor

The Blueprint of LLC Hiring an Independent Contractor

corp to corp agreement template
w4 for contractors

Corp to corp agreement template

The number of new businesses is increasing exponentially as the business market continues to grow. These days people prefer making an LLC over going for home-based businesses. With an increased percentage of the formation of new start-ups, the demand for independent contractors is also touching the sky.  Through, you can form an LLC in no time.

Here’s a thorough guide on LLC hiring an independent contractor. Following is a thorough guide on how and why to hire an independent contractor for your business: 

What is an Independent Contractor

An independent contractor is one that is responsible for providing a specific service and gets paid for that. Some LLCs prefer hiring an independent contractor over full-time employees because of several reasons. A contractor works on its own terms and conditions and makes sure to put the interest of the LLC first and make important decisions accordingly. He is given a deadline along with clear instructions on how the independent contractor works. For more information visit the website  LabyrinthTM Fundraising Compliance

Advantages of Hiring One

An LLC hiring an independent contractor reaps several benefits. Some of the most common benefits of hiring an independent contractor for your business are as follows:


Hiring an Independent Contractor is really cost-effective in the long run. Such contractors charge for their services, usually on a project basis. They will be paid in full after they have delivered the claimed project and driven promised results.  Additional information Business Licensing

They might spend more time on the same project as a full-time employee would, but they only get paid what has been mentioned in their contract. Their work would be free of monotony and will be overall more affordable compared to a full-time employee. 

No Management Cost

When you hire such a contractor, you will not have to micro-manage the project. Such workers come with self-management and follow perfectly tailored management and productive tools to bring their best for the given project. 

No Office Equipment

Some contractors work from the comfort of their homes, while others have their own workspace from where they operate. They might come for important meetings, but most of the work is done from their own independent office. This implies that you will not have to use any of your personal office equipment for this purpose.  Please give the a phone call if you need more information.

Things to Consider

Following are some extremely crucial tips to consider when it comes to an LLC hiring an independent contractor:

Get the Right Form

There is a variety of legal forms that entertain specific workers. The claims that say W4 is for contractors are false. As this is for an employee, while the form W9 is for independent contractors

Form a Detailed Contract

When a business comes in contact with another business on a particular contract, it will make use of a corp-to-corp agreement template to lay down the terms of the things that will be managed for that particular project. 

Similarly, when your LLC hires an independent worker, it should be through a detailed contract. Make sure that all the terms and conditions, financial agreements, profit and loss breakdown, and a clear description of the project are mentioned in the contract. 


Disadvantages of Hiring an Independent Contractor

Just like a plethora of advantages, hiring an IC can also give you a hard time. It also has a lot of disadvantages that keep people from hiring a contractor. Here are some:

Less Control Over the Employees

If an LLC hires an IC for a particular project or a whole team, then it will have lesser control over the workers. They would approach things the way they feel is in the best interest of the company. They will keep the requirements and goals of the company into account but will use their own methods and process to complete a particular project. Get more information Sole Proprietor

However, the company will have the right to ask for changes and edits in the final deliverables, but it can not fully dictate the whole process to be followed. 

Temporary Nature of the Projects

When an IC is hired for a project, it is done through a contract. The contract is time bound and is, thereof, of temporary nature. If you intend to work with the same contractor again, you will have to come in on a contract again, and this time, the contractor might price his services higher because of the experience and value he provides. 

In this way, you can have multiple contracts within a year where you might need to replace the contractor as he gets out of your budget. This will leave you in a situation where you will have to tell the details of your project to the new worker from scratch.

Complicated Firing Process

It is not as easy to fire a contractor as you may think. Any wrongful termination of the job can lead your LLC to a lawsuit. If you want to fire an IC, it should only be in accordance with the criteria and terms mentioned in the contract that both parties sign before the project begins. For additional information What services do we provide?

For any reason other than the one mentioned in the contract, you will have to wait for the project to be complete because you will not be able to fire the contractor; otherwise, it would be deemed as unlawful termination, and the LLC can be subjected to a penalty in that case. 

Exposure to Liabilities

the LLC will be liable for any kind of personal or professional injury that the IC would have experienced during the project. It will not only financially affect the LLC but can also affect its reputation in the market. So much so that no other IC would want to work for your LLC due to the image formed in the market. It is, therefore, necessary to choose and hire your contractors after a thorough analysis. For additional information Category

Shared Copyright of the Project

If your LLC is working with a full-time employee, the final deliverable of the project will be considered the property of the company, and it will have all the copyrights of that deliverable. However, this is not the case when working with an IC. The copyright is shared between the LLC and IC equally. To save yourself from potential theft, you can add a clause in the contract that the IC can not use the project for commercial purposes or personal gain for a particular period of time.