Significant investment not required It should be stressed that a significant investment is not necessary for independent contractor status. Some types of work simply do not require costly equipment. Writing or certain types of consulting are examples. Further, even if costly equipment is required, an independent contractor may rent the equipment needed from a third party. 7 H is a writer.
H works from home.
The entire investment consists of a personal computer, printer, and basic word processing software. Because the computer, printer, and software can be used for both personal and business purposes, H 's expenditures are not persuasive evidence of a significant investment. However, depending on other facts, H may still be an independent contractor. Although not every business need involves significant investment, almost every business will incur an array of business expenses. Reimbursed expenses Companies ordinarily pay workers' business or traveling expenses.