Cal-Pacific News & Etc.

While Court Reporters still are awaiting to be exempt from the new AB 5 law that became effective on January 1, 2020, there are a few things that you can do in the meantime to try and protect your status as an independent contractor. We have spoken with our attorneys in which they all agreed this is the most likely way to protect yourself to maintain your independent status. (This information is NOT intended to substitute for legal advice from your own attorneys and tax adviser). We have had many court reporters ask us what to do the First thing we would do is become an authentic business entity - working as an individual doesn't count. You must be a qualifying business entity that has a business license listed as either a sole proprietorship, partnership, limited liability company (LLC) or corporation (s-corp or c-corp). Steps to take for example for a Sole-Proprietor, which is fairly easy and quick to accomplish: #1 – Get a business license from the city where your home office is located. #2 – Choose a business name that you wish to operate under. Example: “Patricia Smile, CSR 14457” #3 – File for a Fictitious Business Name (FBN) which you file with your local County Clerk’s office. Request a Fictitious name Statement form. (Other legal entity types can be searched at https://businesssearch.sos.ca.gov ) You'll be granted that name, assuming there is no one else with that business name that you chose. #4 – Once the FBN is filed, it must be published. Your new FBN now becomes your business name. #5 – All pay from agencies/business you decide to work with should be made to you under your new business name. #6 - Get a Federal Employers Identification number (FEIN). FEINs are free and can be applied for online. #7 – Once receive your FEIN fill out & send in a new W9 to your agencies or businesses you work with #8 – We think this is important - Once you have all your paperwork proof, Business Lisc, FBN, and FEIN that show you are an Official Bona-Fide Business open a separate Business Bank Account under your new Business Name. You need to keep records of everything that you do for your business separate from your personal items. ~Yay, you did it! Now you are all set to go and are an Authentic Independent Business! 😊 Now Second thing to tackle to be sure you'll be considered as an Independent contractor is to satisfy the following items listed for AB 5 as follows: 1) You must be free from the hiring Company's control and direction while performing the work (this must be set forth in the contract and be true in fact). 2750.3(e)(1)(A) 2) You must provide services directly to the contracting business rather than to customers of the contracting business. 2750.3(e)(1)(B) 3) You must have a written contract. 2750.3(e)(1)(C) 4) You must have all required business licenses or business tax registration. 2750.3(e)(1)(D) 5) You must maintain a business location separate from the business or work location of the hiring company. 2750.3(e)(1)(E) 6) You must be customarily engaged in an independently established business of the same nature as that involved in the work performed. 2750.3(e)(1)(F) 7) You must actually contract with other businesses to provide the same or similar services and maintain a clientele without restrictions from the hiring Company. 2750.3(e)(1)(G) 8) You must advertise and hold yourself out to the public as available to provide the same or similar services. 2750.3(e)(1)(H) 9) You must provide your own tools, vehicles, and equipment to perform the services. 2750.3(e)(1)(I) 10) You must provide your own tools, vehicles, and equipment to perform the services. 2750.3(e)(1)(I) 11) You must be able to -- consistent with the nature of the work -- set your own hours and location of work.2750.3(e)(1)(K) 12) You must not be performing work that requires a license from the Contractor’s State License Board. 2750.3(e)(1)(L) These steps can really be taken for anyone who really wants to try and keep there independent status. This information is NOT intended to substitute for legal advice from your own attorneys and tax adviser. Without case law precedent, it is not possible to definitively state we fall under the above exemption. However, it appears that agencies and CSRs do qualify if the conditions are met. Suggest you do your own follow-up by reading, searching, and consulting with your own counsel and tax adviser. 