Employees or Independent Contractor?

[bell]

I am going to start a grooming shop at a local pet store. They gave me an option either hired as an employee or come in as a service (independent contractor), either way I will get paid by commission and running the grooming department. I'll bring all my equipments and buying all my grooming supply. The store just supply a room; water/heater and electricity, instead of paying rent I'll pay commissions. I'm not sure which way is better for me. I don't care about the employee benefits, I get my health insurance through my husband's job. The pet store is responsible for anything happen(accidents I mean) in their property so i guess i won't need to get an insurance for the business. I don't mind filing my own taxes or paper works for the business. So which way would you guys choice if you were me? Oh as long as I keep the customers happy, they don't care how I run the grooming department.

Stephen: You need to determine and learn about the EXTRA taxes you pay when self employed. IC's pay more taxes than what is deducted from an employee's paycheck, this is what they all forget, don't know etc.

[bell]

Stephen: You need to determine and learn about the EXTRA taxes you pay when self employed. IC's pay more taxes than what is deducted from an employee's paycheck, this is what they all forget, don't know etc.

Stephen, isn't it true I can have more tax deduction as IC than as an employee? Most business won't make a profit for at least 2 years, in another word, IC don't pay a lot more taxes than an employee?

[dodger]

IC or employee

As an IC you will need liability insurance. You cut a dog or the dog dies in your care you are liable as an IC. It is your business. The IC may pay more in taxes but they get all the deductions of running the business which is the only reason most owners stay in business. It will take until the end of the year to equal out. Get a good but reasonable accountant. At least to get started. You might be able to take out a workmens comp policy on yourself. I would also recommened a disablily policy for extented injuries and illnesses. How much are we talking for rent as an IC in the store. Commission percentage. Might want a little imput there. Remember you are going to bring extra revenue into the store. if the store can just recover the cost of having you there they should be happy with that. I've done everthing but mobile. Hope this helps.

[Soap]

You might be able to take out a workmens comp policy on yourself.

Not only 'might want to', but some states require it by law depending on your business entity. I have mine through The Hartford.

[luvpups]

Mine is Hartford also!

[lefty]

The difference for me was that as an employee, I got workers comp. I also got an employee discount for vet services. I opted to be an employee for the clinic I worked at.