They are usually contracted to perform specific tasks and they have the right to control the way the work is to be accomplished. They have a substantial investment in the business and perform services for more than one business. Generally speaking, they are anyone who is not an employee under the common law rules unless they are statutory employees. All other relatives of the covered employees, wages paid to all, relatives of the covered employees, and wages paid to all relatives of the employer are subject to PIT withholding. Students under the age of 22 enrolled full-time in an academic institution and performing services for credit under a work experience program.
Wages paid to such workers are subject to PIT withholding.
Here is the challenge with our competition when it comes to giving you accurate information. Not all business requires licenses. You must check with the city and county in which you are conducting business to determine their requirements. You may even have to register as a foreign corporation in other states if it is determined you are doing business in that state and your corporation has sufficient nexus in that state. The IRS never understands how independent contractors operate corporations.