Tutors as Independent ContractorsI am opening an in-home tutoring service that matches tutors with clients. The tutors are classified as in...

Question

Tutors as Independent Contractors

I am opening an in-home tutoring service that matches tutors with clients. The tutors are classified as independent contractors. In California, are they required to have their own business license? If so, is there a way around it?

Answer

Re: Tutors as Independent Contractors

Tutoring is not an occupation that requires a professional license. such as nursing, contracting and real estate sales. There could be exceptions for certain unusual areas of expertise (instructional specialties).

Whether each tutor would require a business license is a local matter; business licenses are issued by cities and, in unincorporated areas, by counties.

I would caution you about three more things, however. First, you need to be really careful that the tutors meet enough of the criteria to be recognized as independent contractors and not employees. It is tougher than many small businesses realize to avoid being tagged as an employer by some agency or another, e.g. the FTB or workers' comp. Second, be sure to screen your tutors for background and have liability isurance before you send them into the homes of children! Finally, be aware that daycare is a regulated business and avoid doing anything that approaches daycare.