A worker’s employment status affects many issues such as employment benefits, tax implications, and liability. Many small businesses prefer to hire independent contractors due to flexibility, costs and less regulations. Employers have more financial obligations if they hire employees such as paying federal income taxes and benefits (including vacation, holiday, and sick pay). On the other hand, if your small business hires an independent contractor, you are not required to make these payments. Unfortunately, there is no single test for determining whether a person actually is an employee or independent contractor. The IRS emphasizes the importance of understanding and correctly applying t
A privacy policy is required if you are collecting personally identifiable information from the people visiting your website, blogs, e-commerce stores, mobile app, etc. Personally identifiable information is any kind of data that can identify an individual, such as their email address, first and last name, address, phone number, credit card information, and so on. This requirement applies to all websites, big or small. If you own a small business or even just write a blog for fun, you might be surprised to find that you need a privacy policy. You might not even be aware that you are collecting various forms of information from your visitors, tracking them with analytics, or displaying ads.
When you start working to sell products or services from your home, you are running your home based business as a sole proprietorship. As a sole proprietor, if you end up being sued, your personal property is not protected and your family’s assets are put at risk of being seized. This includes your home, car, personal bank account and any other assets your family may have. On the other hand, if you form a legal entity and operate it according to law, then your personal assets can be protected. If you have your own home based business, including online sales or multilevel marketing, there are several reasons why forming a business entity would be beneficial to your business and yourself.
