Legal Question in Business Law in Virginia

Contract Work

I have created an arrangement with my employer to do contract work from my home. My employer suggested that I incorporate myself being that this type of work would actually be considered being in business for myself.

What would be the best type of business formation for me?


Asked on 8/24/07, 10:49 am

2 Answers from Attorneys

Michael Hendrickson Law Office Michael E. Hendrickson

Re: Contract Work

Before rushing ahead to incorporate yourself or assume some other business entity formation, I would suggest that your review the U.S. Department's of Labor's (See DOL website)) criteria for determining whether a worker actually has the status of an independent contractor or in fact is rather an employee (and should receive the benefits from the employer as such). Merely because you're working from home is not enough to have you classified as an independent contractor, and, I regret to suggest that your employer may have his or her own ulterior motive(s) for wanting to classify you as such.

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Answered on 8/24/07, 1:32 pm
Ruth Emily Kochard Ruth Emily Kochard, Counselor at Law

Re: Contract Work

Provided that you are not in fact still an employee, and are rather an independent contractor, you should consult an attorney to determine what--given the nature of your business--will be the best form. Many new enterprises that are small or solely owned opt for an LLC. However, I suggest contacting an attorney for a detailed review of your situation. I would be glad to speak with you if desired and can be reached at the contact information provided.

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Answered on 8/24/07, 4:37 pm


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