The subcontractor is allotted a certain amount of time to design, build, and deliver the requested sign item to the customer who has subcontracted the work. The subcontractor constructs the sign by his or her own means. They have their own supplies, machinery, workers, and expenses. The customer receives the finished product without really knowing how it was made, who made it, or taking any responsibility for any part of the process. They pay the price agreed upon when the job is offered and taken.
Subcontract work is a closed deal.
Often subcontractors are more useful for smaller businesses because large corporations prefer to the perceived cost-effectiveness of acquiring materials and services at bulk rates. They also tend to think of wanting to know where they can find you after the job is over. Larger sign shops seem more secure and reliable than subcontractors. Increasingly, over the past decade, the IRS has expressed concern that these self-employed sign makers who work as subcontractors are accumulating more revenue than they actually record. The IRS also is nervous about businesses that are exaggerating the actual costs of subcontractors and then writing them off as business costs.