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  1. #1
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    Becoming an independent contractor

    Hey all,

    I am interested in knowing if contractors usually want to start their own businesses and be independent ?
    If so what do they need to start ? (like a van, stack of parts, etc) ?

    Thanks

  2. #2
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    Man, there could be a book about that........
    [Avatar photo from a Florida training accident. Everyone walked away.]
    2 Tim 3:16-17

    RSES CMS, HVAC Electrical Specialist
    Member, IAEI

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  3. #3
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    I just looked at the title of this thread again, and I wanted to point out that there's a difference between being a contractor and being an "independent contractor."

    An independent contractor is usually a subcontractor to a main contractor. Sometimes contractors try to use employees as independent contractors because it's better for them financially...however, the Internal Revenue Service cracked down on the practice of using employees as independent contractors about 15 years ago, and in the case of many flight schools that used to pay their flight instructors as independent contractors, those flight schools decided to close as a result of that crack down.

    One of the key factors is if your appearance at a particular time at a particular location is dictated by someone else, you are actually an employee and should be receiving a W-2 and you should be covered by workman's compensation Insurance paid for by your employer, and you should receive a W-2 at the end of the work year and not a form 1099.
    [Avatar photo from a Florida training accident. Everyone walked away.]
    2 Tim 3:16-17

    RSES CMS, HVAC Electrical Specialist
    Member, IAEI

    AOP Forum Rules:







  4. #4
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    Thread Starter
    Hey,

    Thank you very much for your reply.

    I understand the usage of the term ''independent contractor''
    So in a situation where

    'your appearance at a particular time at a particular location is dictated by someone else, you are actually an employee'

    does the contractor have his own stuff, all the necessary parts, tools, van, or is supported by the employer ?











    Quote Originally Posted by timebuilder View Post
    I just looked at the title of this thread again, and I wanted to point out that there's a difference between being a contractor and being an "independent contractor."

    An independent contractor is usually a subcontractor to a main contractor. Sometimes contractors try to use employees as independent contractors because it's better for them financially...however, the Internal Revenue Service cracked down on the practice of using employees as independent contractors about 15 years ago, and in the case of many flight schools that used to pay their flight instructors as independent contractors, those flight schools decided to close as a result of that crack down.

    One of the key factors is if your appearance at a particular time at a particular location is dictated by someone else, you are actually an employee and should be receiving a W-2 and you should be covered by workman's compensation Insurance paid for by your employer, and you should receive a W-2 at the end of the work year and not a form 1099.

  5. #5
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    Some companies require you to have your own tools, while others provide a vacuum pump, recovery machine, etc, while the tech provides the rest.
    [Avatar photo from a Florida training accident. Everyone walked away.]
    2 Tim 3:16-17

    RSES CMS, HVAC Electrical Specialist
    Member, IAEI

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