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Richard - Bizlaw
Richard - Bizlaw, Attorney
Category: Business Law
Satisfied Customers: 10469
Experience:  30 years of corporate, litigation and international law
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Can I give a title of VP of sales to an independent contractor

Customer Question

Can I give a title of VP of sales to an independent contractor and print our company's business card for him?
Submitted: 1 year ago.
Category: Business Law
Expert:  Richard - Bizlaw replied 1 year ago.
Hello, my name is ***** ***** I will try to help you. Please remember I just report or interpret the law, so the outcome may not be what you hoped for. Technically you can name him or her a VP of sales even though they are an independent contractor. However, to the outside world, that person will be able to bind your company just as though he was in fact an the VP of Sales with the authority that office normally carries. As between your company and him he can be an independent contractor. The other problem you will have is that for taxing authorities they may expect things like social security and unemployment compensation to be paid. That can probably be addressed by requiring the person to pay self employment taxes and to indemnify you from having to pay those costs. His duties must also be that of an independent sales rep and not a VP of Sales.If I have answered all your questions, please positively rate my answer as that is how I receive credit. If you have more questions, please let me know. If the answer was especially helpful you can provide a bonus.
Customer: replied 1 year ago.
So, if we do name him VP of sales, are we gonna violate the law? That's what I need to know.What if we name him Director of Sales or Sales Manager, will that make difference? Also, VP of sales is not an officer, right?Thanks.
Expert:  Richard - Bizlaw replied 1 year ago.
You will not violate the law by naming him VP of Sales. The problems I described would apply to any other position he held. Normally a VP is an officer of the company but not necessarily. Normally in small companies a vice president is an officer appointed by the Board of Directors. In large companies such as Banks, VPs are often not "corporate officers" in the sense they were appointed by the Board of Directors. To avoid that concern you could sue the title of Director of Sales or Sales Manager.If I have answered all your questions, please highly rate my answer as that is how I get credit for working on your question.