If you have an opportunity for profit or loss resulting from your services, you are generally considered an independent contractor. If you are not in such a position, you are likely to be considered an employee.
Opportunity for profit or loss may be established by one or more circumstances. Examples of such circumstances are if a person:
Hires, direct, and pays assistants;
Has his or her own office, equipment, materials, or facilities for doing work;
Has continuing and recurring liabilities or obligations;
Succeeds or fails depending on the relation of receipts to expenditures;
Agrees to perform specific jobs for prices agreed upon in advance; and
Pays expenses incurred in connection with work performed.
Last Revised: March, 2001