faq
The Most Frequently Asked Questions.
From business setup and legal requirements to taxes, payments, and day-to-day flexibility—this FAQ hub gives you quick, straightforward answers to the most common questions caregivers ask before beginning contract work.
- All
- Business Setup Basics
- Getting Paid as an IC
- Insurance & Legal Requirements
- Taxes & Money Management
- Work Flexibility
Yes! Flexibility is one of the biggest advantages of independent contracting.
Yes — always review the contract! Pay rate, cancellation policies, scope of work, and insurance requirements matter.
If unsure, consult an attorney.
Yes. Because you operate as an independent business (sole proprietor or LLC), you are responsible for maintaining your own professional and general liability coverage. This protects you and your business from claims related to your work, errors, or accidents while on assignment.
Resource:
- Caregiver Liability Insurance Quote (CM&F): https://access.cmfgroup.com/s/formrouter?producer=0031K00002jLdoGQAS
Yes! Accurate time logs and receipts support invoices, bookkeeping, and taxes. Record-keeping should generally be kept for 3–7 years.
No. Independent Contractors must bill taxable income. Stipends offered to W-2 travelers cannot be applied the same way.
Yes. Independent Contractors typically receive a 1099-NEC from each agency or facility where they earned $600 or more during the year.
You submit invoices directly to the agency or facility. Payments are made with no taxes withheld.
- IRS Self-Employed Tax Center
- IRS 1099-NEC Guide
- SmartAsset – Independent Contractor Tax Guide
- Apply for an EIN (IRS)
- IRS Business Structure Guide
- SBA Guide: Choosing a Business Structure
Common deductions include mileage, uniforms/supplies, licensing fees, continuing education, scrubs, equipment, and a portion of your phone or home office (if applicable).
Very important. Keep detailed records of income, invoices, mileage, receipts, and business expenses to maximize deductions and stay audit-ready.
Often, yes. Making quarterly payments helps you avoid IRS penalties and ensures you stay on track with income and self-employment taxes.
You may face penalties or interest. A tax professional can help you plan quarterly obligations.
No. Contractors are responsible for their own taxes, including quarterly payments (if required).
This includes both the employer and employee portions of Social Security and Medicare taxes (approx. 15.3%).
Both structures typically report income via personal tax returns (Schedule C). LLCs have the option to elect S-Corp status later if income grows, which may reduce self-employment taxes.
Absolutely. Many IC caregivers start small and transition to an LLC as they grow or want extra protection and branding.
Many ICs choose an EIN to avoid using their SSN and for added professionalism when invoicing.
Highly recommended for clean bookkeeping and to support liability protection.
It varies by state, typically $50–$300 plus an annual renewal fee.
Yes, generally. LLCs offer limited liability protection, but only if business and personal finances remain separate and proper practices are followed.
A Sole Proprietor is you operating your business under your own name or a DBA. An LLC (Limited Liability Company) is a separate legal entity that provides a level of personal asset protection.
No. It’s not required. Many contractors start as Sole Proprietors and form an LLC later.
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