Judge Denies Freelancers’ Bid to Upend California Labor Law

[carolina73]

My daughter ran a small hair salon. She worked there and rented chairs to others who were independent contractors. She got group health insurance that the contractors could buy if they chose and they all chose. They were responsible for paying their FICA taxes and income taxes. They set their own hours.

She was harassed out of the business by the government. She became an independent contractor and rents as chair from someone else who is harassed by the government.

First that is ridiculous. She should feel harassed but I bet a good lawyer could get around that.

[MisterVeritis]

I honestly don't know. I hope I don't have any issues because I'm self-employed, but you never know. Other writers are forming LLCs (individually and as groups) as well. I need to look into the tax aspects. Soon.

Yep. I am an LLC. :-)

[MisterVeritis]

An LLC is a passthrough entity, such that profit or loss flows through to the members. Any profit or loss is then taxed at your individual rate rather than a corporate rate.

I believe there are a few extra hinks to a single member LLC, but I do know that most LLCs opt to be treated as a Partnership rather than a Corporation because the taxing basis is more favorable.

An LLC provides some shields in the case of a liability situation.

*for informational purposes only, I am not an attorney.

This is what I did and why I did it. I am a single member LLC.