Classification As An Employee Or Independent Contractor

[hmbailey]

I have an LLC in North Carolina that makes fashion accessories (purses). I am trying to hire people to help in the production of the purses. I am unclear as to whether someone to whom I provide the material (fabric and thread) must be treated as an employee or if they can be independently contracted. They will be using their own equipment (sewing machine) to produce these purses at my direction using my provided patterns.

Thank you for your assistance.

[seniorjudge]

Look on the IRS website.

There is tons of info on indie contractors.

[aaron]

You may wish to start here.

[Betty3]

Here also is a US DOL fact sheet re employee v. IC.

http://www.dol.gov/esa/regs/compliance/whd/whdfs13.pdf