According to IRS guidelines, what are independent contractor sales agents required to do?

Independent contractor sales agents are required to pay their business fees. This reflects the nature of independent contractors who are often responsible for their own expenses, including costs related to licensing, marketing, and other business-related fees. Unlike employees who might have certain expenses covered by their employers, independent contractors operate their own businesses and must budget for their operational costs.

The requirement for independent contractors to pay their business fees signifies their autonomous status and the need to maintain financial responsibility for their business operations, which may include tools, insurance, and administrative costs necessary for their work.

In contrast, reporting all income on a W-2 pertains to employees rather than independent contractors, who usually report their earnings via a 1099 form. There is no stipulation regarding a maximum number of working hours tied to independent contractor status, and while remaining licensed is important, it is more of a regulatory requirement than a direct consequence of their contractor status under IRS guidelines.