Avoiding Start Up Problems When Opening Shop
It is a moment when dreams begin to take the shape of reality.
After countless days of hard work and planning, you are finally ready to put pen to paper on what will be your new store, restaurant or office space. Unfortunately, this is far too often the same point of the story where the dreams of business owners can create nightmares that cost small fortunes unless proper steps are taken.
Leasing out new space for a business can be an emotional time filled with excitement, anxiety and uncertainty. As a result, people frequently rush into leases with landlords that they have no business signing. Most leases are prepared with language geared to deflect liability from the landlord. This is not to criticize landlords, as they too must protect their own business interests in the transaction. However, there is a common misconception that leases are some sort of magical documents that could never be edited in Microsoft Word. (more…)
Independent Contractor vs. Employee
Businesses today often hire independent contractors over employees, however, the distinction is often blurred and liability may result not only to a third party but also to the Internal Revenue Service. In the event the Internal Revenue Service determines a worker is an employee and not an independent contractor, an employer may be charged with back payroll taxes, interest and penalties.
Once your company determines it will hire independent contractors, certain steps should be taken. It should be clear on the job application that the position is for an independent contractor. Next, all contracts should be in writing between the employer and the independent contractor. The contract should specify that the relationship between the parties is that of an independent contractor. Next, the relationship between the company and the independent contractor should be at arms length. The worker should be paid by the job rather than hourly or weekly.