Startups often blur lines when hiring — but classifying workers incorrectly can trigger audits, penalties, or lawsuits.

Why Classification Matters

• Misclassification leads to back taxes and fines
• Contractors may claim employee rights
• IP ownership confusion if contracts aren’t clear

Key Legal Differences

• Control over schedule, tools, and process
• Benefits and tax withholding obligations
• Ownership of work created

What Can Go Wrong

• Labor board investigations
• IRS penalties
• Contractors walk away with your IP

How Rann Law Helps

• Evaluate roles and draft compliant agreements
• Update contracts as roles evolve
• Protect your business from audits and liability

Pro Tip

If it walks like an employee… treat it like one — or get legal help.