Legal Question in Business Law in Illinois

Does someone working as an independent contractor Psychic Reader for an online Psychic company (Liveperson or Keen) need to have a business license, register their business, and have a tax id for sales tax in Hanover Park, Illinois? Do I need a business license if I am an independent contractor?


Asked on 1/25/12, 11:37 am

1 Answer from Attorneys

Being an independent contractor and having to have a business license are separate issues. The company you do readings for should have its own documentation, tax IDs, etc., and you should have some kind of contractual arrangement that creates the relationship of owner-independent contractor as opposed to employer-employee. Next, if your community requires this kind of work to be licensed, and you reside in the community, then you may need a business license to operate it out of your home. As to a "sales tax" ID, if the company is charging for services and all you get is a typical commission, then the company may be required to collect and/or remit taxes from customers, not you. Your commissions, or however else you may be compensated, would normally be reported for income tax purposes on your 1040 Schedule C if you are not incorporated, or on the appropriate corporate tax return. If you are charging for the services yourself and have to give the company a cut, however, then the answers would change. Without reviewing the total picture, however, I can not say for certain whether any of this is absolutely accurate. And whether you are truly an independent contractor or an employee is also subject to some interpretation.

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Answered on 1/25/12, 1:50 pm


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