Legal Question in Business Law in New York
I freelance for a restaurant company and am trying to get other clients, but currently they are my only client. I have invoiced them and filed under a schedule-C, now they are stating I have to form an LLC to be paid. Is this correct?
2 Answers from Attorneys
This is not a question of correct or not and how you file your taxes does not dismiss their obligation to pay you. There is no mandate on a person who works as an independent contractor to incorporate. One could be a sole proprietor, get an EIN and maybe get even what is known as a "DBA", however there are benefits to incorporation (forming an LLC or a corporation) especially if this is going to be a growing business for you.
Feel free to reach out directly to me.
Roman R. Fichman, Esq.
www.TheLegalists.com │ @TheLegalist
email: Info (@) TheLegalists (dot) com
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Disclaimer: This post has been written for educational purposes only and was not meant to be legal advice and should not be construed as legal advice or be relied upon. No intention exists to create an attorney-client relationship or any other special relationship or privilege through this post. The post may contain errors, inaccuracies and/or omissions. You should always consult an attorney admitted to practice in your jurisdiction for specific advice. This post may be deemed as Attorney Advertising.
They either owe you for services rendered as an independent contractor or as an employee. If they refuse to pay you, let them know you will file a wage claim dispute with the Dept of Labor and they and the IRS can determine whether you were a bona fide employee misclassified as an IC. The fact that you have not set up a legal entity has nothing to do with whether they should pay. Alternatively, you can just sue them in the small claims court where no lawyer is required.
If you would like to discuss further over a free phone consult, feel free to contact me anytime that is convenient.
Our firm is now referred by the American Bar Association (see under the New York section):
http://www.americanbar.org/groups/delivery_legal_services/resources/programs_to_help_those_with_moderate_income.html
Kind regards,
Frank
www.LanternLegal.com
866-871-8655
DISCLAIMER: this is not intended to be specific legal advice and should not be relied upon as such. No attorney-client relationship is formed on the basis of this posting.
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