Can a sole proprietor hire an independent contractor with only a DBA license?

What documents are required for hiring an independent contractor, provided no business formations (LLC, Corp, etc.) are needed?

Asked on July 30, 2014 under Business Law, North Carolina

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

Yes, you can hire an independent contractor who does not have a  "corporate" structure (e.g. a corporation or LLC). All you absolutely need is his/her social security number, which will used on the 1099, etc. However, there are other things you should have:

1) Have him/her sign an agreement confirming that he/she is an independent contractor, not an employee, and is resonsible for own taxes, own benefits, etc.

2) Have him/her provide proof of any insurance which it would be good for him/her to have to protect you (e.g. liabiliity insurance), naming you/your company as an additional payee.

3) If the contractor requires a license for his/her profession or trade, get a copy of said license.


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