An individual, who holds an ICEC, is an independent contractor if he or she:
maintains a separate business with the individual’s own office, equipment, materials, and other facilities;
holds or has applied for a federal employer identification number or has filed business or self employment income tax returns with the federal Internal Revenue Service if the person has performed services in the previous year for which the individual is seeking the independent contractor exemption certificate;
operates under contracts to perform specific services for specific amounts of money and under which the individual controls the means of performing the services;
incurs the main expenses related to the service that the individual performs under contract;
is responsible for the satisfactory completion of services that the individual contracts to perform and is liable for a failure to complete the service;
receives compensation for service performed under a contract on a commission or per-job or competitive bid basis and not on any other basis;
may realize a profit or suffer a loss under cCoontracts to perform service;
has continuing or recurring business liabilities or obligations;
the success or failure of the individual’s business depends on the relationship of business receipts to expenditures.
There is controversy about independent contractors and the various obligations of the company using the services. It involves how and who will pay the state and federal employment and income taxes. It involves liability for injury to the contractor or injuries by the contractor at the work place.
I work as an independent contractor serving several very large organizations who like to contract with old retired guys. The preference is for the contractor to be corporation rather than an individual. Once becoming a corporation, most of the problems disappear. That seems part of the intent of the law in question.
In my view, those who want to be independent contractors should become corporations. It solves lots of problems with the customer and provides benefits normal to corporate being.