Contractor vs. Employee: How The Wrong Decision Can Blow Up Your Business Model

Business models.
So complicated. So confusing. So “I have no idea what I'm doing.”
Until you figure out the right one.

RRTV71And then you're all “This is it! This is the magic! This is my key to take over the entire motherf&*^ing world, PEOPLE! #winning”

But you need help. You can't do it all alone. You are superwoman/man but even superheroes could use a little assistance from time to time.
So you decide to build your diabolical team of assistant superheroes. Smart move.
You put together your job descriptions, get the word out, start interviewing people and find THE ONES.
Now, it's you and your superhero team ready to execute your enchanting business model that will be the BEST THING THE WORLD HAS EVER SEEN. No exaggeration.
But you skipped a step. A seemingly unimportant step. An afterthought, even.

Only its actually SUPER DUPER IMPORTANT, dude!

What is this mistake?
It's not taking the time to classify your workers. What the hell is that, Rachel?, you ask.
It's how you determine whether your worker is an independent contractor or an employee. This is a determination that the IRS or a formerly-happy-but-now-disgruntled worker would be thrilled to make for you (hint: you don't want that). So its something you really must figure out because it can cost you a lot of money (in taxes and penalties) and totally screw your business model (like what's happening with Uber in California right now).
Despite popular belief, your workers are not independent contractors just because you would like them to be. Also, you can't wish your workers into being contractors either. I know, disappointing …
But never fear, RRTV is here to give you the low-down on classifying your workers.
Be ye edutained:
[youtube width=”853″ height=”480″]http://youtu.be/jAvbugJqwdQ[/youtube]
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