Palmer Powered Solutions

Are they really an independent contractor or are you just calling them one?

Misclassifying a worker isn’t just an HR mistake, it’s a liability risk.

Here’s what most business owners don’t realize:
When you misclassify someone as a contractor instead of an employee, you’re not just risking back taxes and penalties.

You’re also risking ownership of your intellectual property.
If there is no properly drafted agreement:
• You may not automatically own the work they create.
• You may not own the content, designs, code, or brand assets.
• You may not have enforceable confidentiality protections.
Employees and independent contractors are treated very differently under the law, especially when it comes to control, taxes, benefits, and IP ownership.

If you are building something that is meant to last, you cannot afford classification confusion.

Before you hire your next “contractor,” make sure your structure matches your intention.

If you need clarity on how to protect your business, book a Brand Protection Strategy Session through the link in my bio.
Let’s build it right the first time.

One thing that catches business owners off guard every year is annual renewals.

Most states require some form of yearly filing to keep your business in good standing — but they don’t all call it the same thing, and they don’t all work the same way.
Some states require an annual report.

Others use different filings or compliance requirements.
For example, Texas doesn’t have a traditional “annual report.”

Instead, most businesses are required to file a Texas Franchise Tax Report and related filings each year. Texas only assesses franchise tax once a business exceeds certain revenue thresholds — but the filing requirement still exists, even if no tax is ultimately owed.

The key point isn’t memorizing what every state calls it.
The key point is knowing what your state requires, what the deadline is, and making sure it gets done on time.

The new year doesn’t pause compliance — it just brings the next deadline closer.

If you’re operating in more than one state or aren’t sure what applies to your business, this is a good moment to pause and get clarity before something lapses.

New year. Same responsibility to protect what you’re building.