ab-5 exemptions
in order to retain their independent contractor status and avoid losing income, some workers are forming llc's and establishing themselves as a separate business entity. in fact, the california secretary of state's office reports that llc registrations increased 5.71% from 2018 to 2019. ab-5 could be a factor in this increase as more contractors attempt to qualify for the business-to-business exemption. in addition to being a possible way of sidestepping the effects of ab-5, registering as an llc can also help gig workers protect themselves and their assets by limiting their personal liability.
that said, there's a chance that creating an llc alone is not enough to skirt ab-5's restrictions. the biggest hurdle for these new llc's to pass is proving that they are performing work that is different from the hiring entity. for instance, a court can easily find that a freelance writer is doing the usual work of a media company by submitting similar content to what is being published.
some media companies have taken more clear cut measures for ab-5 compliance, including not hiring any california-based independent contractors and/or converting contractors to employees.
llc formation
forming an llc is an easy way to protect one's assets and limit personal liability. an llc (or limited liability company) can also be a useful business structure to set up because they tend to have less corporate governance requirements compared to other entities. if you are thinking of forming an llc as a way to bypass ab-5, it is recommended that you talk to a lawyer.
this article contains general legal information and does not contain legal advice. 2022世界杯32强抽签时间 is not a law firm or a substitute for an attorney or law firm. the law is complex and changes often. for legal advice, please ask a lawyer.
