Hi, I own my Electrical Engineering Consulting company and I am the only employee. I am currently doing engineering work for a company that has just told me that I won't be able to continue to do work for them because of Employee Misclassification. They say that I will need to go through a staffing agency like Aerotek if I want to continue to do work for them. I don't want to do this because then I am an employee of Aerotek and they are making a lot of money off of me and I will maybe make 50% of what my company is making now from this client. Is there anything that I can do to avoid losing the business relationship that I have with them now? I will not go to work for a staffing agency, but I don't want to lose all the work from my biggest client either. What can I do so that my company can still do engineering work for this other company without them violating any laws. It feels like I am being punished for having my own company. Please help.
Thank you!
Answer
I believe that they want you to have corporate structure around you. You might want to ask them whether if you form an LLC corporation would you still be able to do their work. I believe that they are looking to get you from being considered an employee of their corporation for IRS purposes.
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