* Subcontractors should own their own tools.* You shouldn't be providing them with a laptop or protocol analyzers or anything else that would be expected if someone had their own network integration or service kind of business.
* They should have control over things. You should not be executing the same degree of control over them that you would an employee.
* They should have many clients.
* They should have the ability to sustain a loss. They should also market to the public or have a listing in the phone book.
* You should not be paying by the hour.
* You should be writing the check to the company, not the individual.
For more information talk to your lawyer or CPA, and read the complete article (link above).
Blogged by Computer Consulting 101