Converting workers you have treated as employees to independent contractor status is particularly risky when the workers will hold the same jobs as contractors as they did when they were classified as employees.
Workers engaged as interns can be paid or unpaid, but our response assumes that your question refers to engaging workers as unpaid interns. In order to engage workers as unpaid interns rather than employees, a business generally has to establish an internship program that takes advantage of the trainee exception to the minimum wage and overtime requirements under the Federal Fair Labor Standards Act, or FLSA, which isn’t possible for every small business.
Independent contractors pay their own payroll taxes and insurances, including workers’ compensation, and are not covered by many labor laws, so the financial and administrative benefits of having a workforce composed of independent contractors can be significant.
We do not know if you are currently under a commercial lease agreement or your experience with analyzing and negotiating commercial leases, which may affect your decision; however, you can review industry articles and suggestions on Commercial Tenant Representation Broker services at several websites…
Business sale considerations: Even if your LLC is no longer operating, you cannot transfer the ownership of your LLC and its legal name from yourself to the buyer by completing a form that you submit to the state or federal government. The paperwork required to transfer ownership of your LLC to the buyer and the state and federal notification process (when required) will depend on your specific sale transaction. Also, the tax status of the LLC will impact the process.
The members of an LLC taxed as a partnership cannot take W-2 salaries or wages like employees of the LLC and cannot therefore have their compensation processed through a payroll service. However, they make take salaries in the form of “guaranteed payments” and profit distributions from the LLC as discussed in greater detail below.
Of course, if you own your business, then it is a woman-owned business; however, whether any other minority or women-owned business certification would possibly be of any advantage for your particular business will depend on your target customers, financing requirements, and other factors.
As discussed in the EEOC and other labor industry information below, it is possible to develop acceptable policies and procedures for using criminal background checks in the applicant screening process without violating hiring discrimination regulations. However, due to the general complexities and legal risks, we always recommend that our members consult their business labor lawyers in order identify the federal and state labor laws applicable to their employees and businesses and to develop hiring and other personnel policies and procedures that are legally compliant.