Let’s say that one of your employees forms a corporation. The sole purpose of the corporation is to accept direct payment of wages for the employee. In other words, this arrangement does not affect the employee’s duties or your control over the employee at work. Indeed, maybe you provide the employee with business cards with both your company name and the employee’s name.
Just suppose…
If this employee later sues you for discrimination — these things happen — take the argument that you are not an “employer” because you paid the employee’s corporation, rather than the employee, and burn it.
Image Credit: By Fir0002 – Originally uploaded to the English Wikipedia here by the author, CC BY-SA 3.0, https://commons.wikimedia.org/w/index.php?curid=11904
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