Will You Need to Incorporate to Work?

The Bureau of Labor Statistics groups self-employed workers into two categories: incorporated and unincorporated. Their most recent estimate shows there are 5.3 million self-employed workers who are incorporated, and 9.5 million self-employed workers who are unincorporated. See here (at bottom of data table). Given the growing reliance on “contract work” (see Uber)— and the increasing leverage that corporations have over many workers— will firms insist that individuals incorporate before they perform work for the organization? It would be a great way to shift the risks that inhere with employment—injury on the job, accidents and intentional torts by workers, sickness and injury, and so on— to the incorporated individual. And, it would add false allure to the idea of being your own boss.