Is there any LEGAL way I can build my startup using independent contractors?
We started out subcontracting the fulfillment to other companies in related industries and while it’s going ok we are finding that the businesses pull out when we get too many customers for them and when it starts competing with their core business in terms of time.
The original idea of partnering with and subcontracting the work to existing, well established businesses was to leverage their payroll, insurance, employees, management structure, etc. so we wouldn’t have to build from scratch
After doing a successful test launch in a small market in Florida with a relatively established but small company we just launched in Boston last week with a large company and hit almost 60 customers in a few days only for them to back out and leave us with 60 angry dog owners who we had to cancel on.
The reason for backing out was that our customers were taking too much of his time away from his main business
My mentors and investors are urging me (more like demanding) to adopt a model similar to Wag, Instacart, Rover, etc. and build the company with independent contractors.
Maybe I’m paranoid but I’m scared to death of going down this route because of all the lawsuits around using independent contractors.
Is there ANY way of doing this legally and in a way that doesn’t open me/the company up to lawsuits?