As a small business owner, it is important to know when you need additional workers and when you can hold off on hiring. This can be a slippery slope, especially when you begin to consider all your options.
At some point, you may be faced with an important question: is it best to hire an independent contractor or employee? Since there are pros and cons of both, you never want to jump the gun and make a rash decision.
When to Hire a Contractor
Although every small business is in a unique position, there are times when it makes most sense to hire a contractor. Consider the following:
When to Hire an Employee
As tempting as it may be to hire contractors time after time, you must consider the fact that you can only control such workers to a certain degree. Here are some circumstances in which it makes more sense to hire an employee:
It can be a challenge to decide if hiring a contractor or employee is best for your company. If you have any questions regarding how this will impact your tax situation, review this information from the IRS while also working closely with an experienced accountant or attorney.
Some companies only hire employees. Some only hire contractors. And some have a mix of both. What is going to work best for your organization?