Small Business Resources, Business Advice and Forms from AllBusiness.com

What Are the Dangers of Hiring Contractors?

Date: Monday, February 12 2007

Hiring independent contractors can give you needed expertise and flexibility.  But, possible downsides could include:

  • higher fees
  • lack of control
  • tax issues

You may have to pay high fees to the consultant. You will likely have limited control over how, when, and where they complete the work. In addition, you could risk tax problems if the consultant operates like an employee.