New York does not require most contractors to hold a license on the state level.
However, the IRS doesn't require a company to withhold taxes or report any income from an international contractor if the contractor is not a U.S. citizen and the services provided are outside the U.S. filing forms 1099 is required if: The contractor is located internationally but is a U.S. citizen.
Foreign vendors do not complete the Substitute Form W-9; foreign persons or entities must submit one of five available forms. The vendor must determine the one most appropriate to their United States tax status for reportable transactions.
Form 1099 is used to report payments made to an independent contractor. Expat business owners may need to file Form 1099 when working with contractors abroad. Failing to file Form 1099 as required could result in penalties.
The new rule, which becomes effective March 11, 2024, rescinds the 2021 independent contractor rule issued under former President Donald Trump and replaces it with a six-factor test that considers: 1) opportunity for profit or loss depending on managerial skill; 2) investments by the worker and the potential employer; ...
Others vary by county or city, like in California. Independent contractors don't need a license to operate in the state of California, but they may have other requirements based on where they build their business. Still others will vary based on the kind of work you do.
Employers are required to check the work authorization of employees and can face fines and penalties for failing to do so or for hiring employees who they know do not have work authorization. All immigrants regardless of legal status are able to earn a living as independent contractors by using an ITIN number.
6. Check licenses. Home improvement contractors must be licensed in New York City, Suffolk, Nassau, Westchester, Putnam, and Rockland counties.
Sales Tax Certificate of Authority: Businesses making sales that are subject to New York State sales tax must register with the Tax Department to obtain a Certificate of Authority. If you have multiple business locations in New York, the state requires that you have a Certificate of Authority for each location.