exercise over someone.  If you control how, when and where a person works, that person is an employee , not an independent contractor.  If the people you hire operate as businesses, and you're only one of their customers, they will likely be deemed independent contractors.  If your independent contractors fall into the gray area, make sure you have written documentation-things like a copy of their business cards or an assumed name certificate filed with the county clerks office.  Also, use contracts for the work they perform and get invoices from the contractor.