My question involves business law in the state of: North Carolina.
I am starting a business with a partner and we have just formed an LLC, and opened up a bank account.
Our business is an on-site auto repair business. We get calls from people who need an auto mechanic, then we contract a mechanic to go perform the repairs at the person's home, or wherever they are. We take a fee as a percentage for getting the mechanics the job.
Now, we are starting to contract someone and I'm confused how far our relationship can go as a contractor relationship.
I know that we cannot:
- Manage or direct the process of the work that contractor does (we can't tell them how to do it, we can only tell them how the end result should be)
- Insist that contractor accept jobs during certain times
- Insist that contractor does not work in relevant field while performing contracting work for us
- Hire employee to do same work as contractor
There are some things that I'm not quite sure about though. Here are some other things we've talked about.
- Contractor wears a uniform with our name on it, but is not required (Uber and Lyft drivers have stickers on their cars?)
- We occasionally pay for contractors gas
- We buy a business phone and give to contractor (for contractor to keep in his possession) so that contractor can use the point of sale mobile application
- We continue to pay monthly phone bill for the phone that contractor is in possession of
- We occasionally buy tools for contractor
- We give contractor a bank card with contractor's name on it in order for contractor to purchase parts for for a client's car (Bank suggested this, insisted that it didn't effect a contractor relationship at all)
- We buy a company van and let contractor drive said van when performing contract work
- We no longer contract with contractor because contractor was not previously available for work when contractor stated they would be
- We guarantee a contractor that while contracting with us they will receive a minimum of $xxx per week
- LLC member (who takes draw from the business) performs same work as contractor
I guess from what I've read, there's no set point when a relationship is no longer a contractor relationship, and that everything must be considered. That being said, which or how many of these things would we be able to comfortably do without blurring the line between a contractor and an employee, and which of these things should we avoid doing in order to keep out this strictly a contractor relationship?
Any other knowledge anyone has regarding this would be great as well!