Well as an IC, if he works inside your facility, you are still liable for OSHA and physical injury. You may still be required for witholding tax liability.
It maybe the new side hustle, but I would keep employees, employees and separate entities outside.
You know eventually there will be some disagreement. Why muddy the waters with a squatter. If he wants to be IC, let him do it on his own dime.
is the IC working out of his home? if so, this is a viable option if- IF this individual has a licensed company, pays taxes thru its company and AND most importantly has a Bond that covers them on your property then ok. a half million dollar bond is about 600$ a year. if he is serious and smart, he will already have one.
Had a job seeker stop by today expressing his desire to not be an employee, but rather an independent contractor with his compensation payable to an LLC. Doesn't seem interested in having benefits--health, pto, holiday pay, etc.
What are the potential pitfalls of such an arrangement? I'm sure he has his reasons, but why wouldn't I want to do this?
TIA
this makes perfect sense if he is a veteran...
he gets taken care of (as he should) and then has to pay for a bunch of worthless bs. also, if he is disabled, you may have state requirements where this relationship could be beneficial in meeting those requirements.
you will avoid paying the "employee" side of maintaining one, he gets a better salary and a major tax writeoff.
its really not much different than having someone do your design work. discounting without exploring further may be a mistake.