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For you, and others in this type of role, it likely makes the most sense to form a LLC or other corporation, and do a corp-to-corp contract. If this ruling holds, companies may even start to require that.

Unfortunately for those in California, CA requires an $800/year minimum fee for a corporation. It’d be nice if these changes forced a change in that law.

(By the way, just to head off a common misconception: You cannot just “incorporate somewhere else” to avoid the $800 fee. If you are a California resident doing work in California, even if you have a “foreign corporation”—California’s term for corporations from other states—you must register it in California and be subject to the $800 fee.)



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