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Ask Asad Rahman Your Own Question
Asad Rahman
Asad Rahman, Attorney
Category: Business Law
Satisfied Customers: 2092
Experience:  Practicing Attorney with 10 years experience
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My LLC is using help of an independent contractor on as need

Customer Question

My LLC is using help of an independent contractor on as need basis. Yearly payments are around $9000.
1. What is a right way to deduct these payments and make sure state authorities do not consider this person my employee and demand workers comp insurance?
2. Would I be better protected if this person forms an LLC and I would be dealing with LLC and not a person?
Submitted: 1 year ago.
Category: Business Law
Expert:  Asad Rahman replied 1 year ago.
My suggestion to you would be to establish a written agreement that explicitly outlines the responsibilities and payment and says that he is an independent contractor and that hs is responsible for all federal and state income taxes on the wages paid to him. Secondly, I do not think it would be good for him to create an LLC because if does a poor job your LLC will want to be able to sue him in his individual capacity for your damages. If you only sue the LLC, which could have no money to pursue for damages.
Expert:  Asad Rahman replied 1 year ago.
Let me know if you have any specific questions. You can find templates for independent contractor agreements online that should have the necessary language that I prescribed.