How to Start a Business

PEOPLE WITH DISABILITIES

income and FICA; however, your client will not withhold taxes for you. As a business owner, you will need to pay estimated taxes throughout the year instead of once a year on April 15. Are You an Employee or Independent Contractor? Just because you or your client calls you an independent contractor doesn’t mean that you are one. There are legal requirements that classify workers into employees and independent contractors. Before starting your first job (or even the next one), it’s important to become familiar with these distinctions. As an independent contractor, you do not have the same legal rights and protections as employees: • You are paid only for the work performed. Your clients are not required to pay employee benefits under the Fair Labor Standards Act (FLSA), including overtime and minimum wage. • You are not covered under your clients’ workers’ compensation benefits. • You are not entitled to receive your clients’ employee benefits. • You are not covered under Equal Employment Opportunity laws as they apply to your client’s relationship with its employees. • Your taxes are not withheld and paid by your client, including income, FICA and unemployment. • If your client misclassifies you as an employee, they may be required to pay back taxes, and provide employee benefits, workers’ compensation, unemployment and more. Just as your client should be very careful to distinguish between employees and contractors, so should you. If you feel you are being treated as an employee, complete Form SS-8 to ask the IRS to make a determination. If the IRS determines you are an employee, you should immediately contact an attorney. You may be able to file a lawsuit against the employer under FLSA, state unemployment or workers’ compensation laws and others.

Starting a business can be a great opportunity for many people with disabilities. In addition to meeting career aspirations and goals, owning your own business can provide benefits such as work flexibility and financial stability. Financing a Business: Federal and state government agencies do not provide grants to people with disabilities for starting a business. However, there are a number of low interest loan programs that help disabled people obtain startup financing.

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