Can Someone be Considered an Employee Even if They Have Their Own LLC?
Implications of a Contractor Incorporating an LLCOften people will form their own LLC for their contracting work. Sometimes the customer/employer requires it as a condition of the contract.
Though it certainly looks and feels more like an independent contractor relationship if the person providing services, it does not necessarily make the arrangement legal. The Massachusetts Independent Contractor Law has three very specific requirements that must all be met to be considered a contractor rather than an employee. This statute does not mention anything about incorporation as an exception to the three-part test. What this means is that you should consult an employment lawyer if you are unsure about the classification of your LLC as a contractor, or are using the services of an LLC as a contractor in your business. Learn more here about the Massachusetts Independent Contractor Law. |
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Meet Our Employment Lawyers
Emily Smith-Lee is the owner and founder of slnlaw. She is a 1996 graduate of Boston College Law School. She was previously a partner at the Boston office of a large international firm, where she worked for thirteen years before starting the firm that became slnlaw in 2009. She has been recognized as Massachusetts Superlawyer each year since 2013, and in 2018 earned recognition as one of Massachusetts Lawyers Weekly's Lawyers of the Year. She has written a book on employment law: Rules of the Road, What You Need to Know About Employment Laws in Massachusetts, and helped thousands of clients on both the employee and employer side with severance and non compete review and negotiation, wage and hour, discrimination and retaliation disputes, and navigating the nuances of the Massachusetts Independent Contractor Law.
Rebecca Rogers: Rebecca is a 2006 graduate of Boston College Law School, and has worked with slnlaw since 2013. She previously worked as an intellectual property litigation attorney for Fish & Richardson in Boston, Massachusetts, and clerked for the Massachusetts Supreme Judicial Court. Rebecca has helped clients with independent contractor misclassification and wage and hour disputes, employment discrimination, harassment and retaliation claims, and review and negotiation of employment and independent contractor agreements.
Jenna Ordway: Jenna is a 2013 graduate of Quinnipiac Law School, and also earned an LLM in Taxation from Boston University in 2015. She has been affiliated with slnlaw since 2011, first as a law clerk and then as an attorney. Jenna has been recognized since 2019 as a "Rising Star" by Massachusetts Superlawyers. Jenna has helped clients with review and negotiation of employment and independent contractor agreements, employee misclassification and wage and hour disputes, and advice to small business owners about employment law and other business matters.
Elijah Bresley: Eli is a 2014 graduate of Seton Hall Law school, and has worked with slnlaw since 2020. He previously worked for a boutique employment law firm outside of Boston, and then for the Labor and Employment department of a large Boston firm. He also spent a year clerking for the judges of the Superior Court in Hartford, Connecticut. Eli has helped clients on the employee and employer side with all varieties of employment law issues, including independent contractor misclassification and wage and hour disputes, employment discrimination, harassment and retaliation claims, review and negotiation of employment and independent contractor agreements, and litigation in state and federal courts on employment related issues.
Sharleen Tinnin: Sharleen is a 2010 graduate of Northeastern University School of Law, and has been with slnlaw since 2023. Prior to joining slnlaw, she worked with King, Tilden, McEttrick & Brink, P.C. on complex civil litigation matters. She previously worked for the United States Department of Justice, and received an "Excellence in Justice" award in 2017. Sharleen has helped clients with independent contractor misclassification and wage and hour disputes, employment discrimination, harassment and retaliation claims, review and negotiation of employment and independent contractor agreements, and litigation in state and federal courts on employment related issues.
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