One of the more important decisions a business owner can make is whether or not to hire another person to help their business. When someone does this, the person they hire can either be an Employee or an Independent Contractor. This is not a decision that should be taken without proper advice and counsel. Once the decision is made to hire an Independent Contractor, then it is important that a formal agreement between that person and the company be implemented. The agreement will spell out the exact duties that need to be done, the compensation structure, termination of service procedures, and will assist the Company in ensuring that the other person is actually treated as an Independent Contractor instead of an Employee, which can result in an large unexpected tax liability. See the link for Employment Tax Liabilities for more information on that subject. The Law Offices of Marc J. Miles can draft an appropriate agreement for you.