Are 1099 Employees Allowed to Work Inside a Business?

man writing at whiteboardFrom Small Business Chronicle, Ron Sardisco addresses a frequently asked question about independent contractors:  can independent contractors work inside a business?  Ron discusses what’s at stake, what factors are involved, both common law and statutory employees and concludes that an independent contractor can work inside a business. He writes:

“Where the work occurs is less relevant than the rest of the relationship. Many doctors are independent contractors and work in hospitals and clinics. Therapists, lawyers and independent sales representatives work in the business from whom they receive payments. A small business providing all the necessary work resources and supervising the activities is likely to fail the independent contractor test necessary to create a 1099 employee…”

Working inside a business is possible, but companies should be careful because independent contractors that work inside a business can begin to look like employees — an engagement that started out with the company exercising little or no control over the independent contractor can evolve into having the company exercising more and more control as time goes by.  While the initial relationship may qualify as an independent contractor relationship, companies should keep an eye on the relationship to ensure it continues to be independent.

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