Depending on the nature of your business, you may benefit more from having someone work for you as an Independent Contractor rather than as an employee. Of course, in order to do that you have to understand the difference between the two. The question of whether a worker is an independent contractor or employee for federal income and employment tax purposes is a complex one. It is intensely factual, and the stakes can be very high because businesses carry a large tax burden for employees.

How you handle your taxes as a small business can mean life or death for your company.  Becoming familiar with the basics is the first step in securing your company’s future.