A worker’s significant investment in the business can be evidence that an independent
contractor relationship exists if the investment is real, essential, and adequate.
However, a significant investment is not always necessary for independent contractor
status since some work does not require large expenses.
Independent contractors may have a significant personal investment in the facilities
they use for work and, unlike employees; they realize a profit or suffer a loss based
on how they perform. Use special scrutiny to examine certain types of facilities,
such as home offices, when making employer-employee relationship determinations.
The fact that workers own facilities that are adequate to complete their work points
to an independent contractor relationship. Such ownership is an influential factor
in the letting of the contract of service. The value of the worker’s investment is
more important than the total value of all the facilities for doing the work.