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1099 contractor lawsuit- my liability as a sole proprietor vs. PC?

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  • jfoxcpacfp
    replied
    If the other person truly is an "independent" contractor, you should technically not have any liability for his/her acts. As @Peds stated, liability would be attached to an employee who is working under your direction. I think the first question you need to resolve is whether this person actually would be independent or would be an employee.

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  • Peds
    replied
    it likely is a good idea if you will have employees.

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  • 1099 contractor lawsuit- my liability as a sole proprietor vs. PC?

    Hello community,

    This is a hypothetical question- If I hire an independent contractor with his/her own professional liability insurance, and that doctor is sued for medical malpractice, would I be liable (My business would be sole proprietorship, as I do not have employees)?

    I ask this question as I am considering whether or not I should form a PC with S-corp taxation status in California for asset protection.  In the near future, I can foresee paying a 1099 contractor for certain days that I will not be at my practice.

    Thank you for your thoughts!
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