Incorporation is a significant step toward getting a start-up
business off the ground. However, there are several questions
relating to incorporation that start-ups should consider when
deciding how to optimally structure their business. This article
summarizes some of these questions from a tax perspective.
Whether to Hire Employees or Independent Contractors?
The distinction between employees and independent contractors is
an important one from a legal standpoint. In practice it is often
difficult to discern whether someone is truly an employee or
independent contractor despite the label both parties have agreed
to. How much control each party has over the work, who owns the
tools and equipment, and how much opportunity for profit/risk of
loss each party bears are just some of the factors that determine
the actual relationship between the parties.
