What is diff between room renter and IC?

[Coach E!]

I own a massage clinic with several treatment rooms.  If I rent out the rooms to other MTs, what is the difference between a room rental lease and an Independent Contractor lease/agreement?   I will be charging a flat monthly rent with utilities included.  Thanks to anyone who can help!

 

[gws35]

What is diff between room renter and IC?

Apples and Oranges.Renters rent, and that is all you get out of it. A fixed monthly fee. You report it as Rental Income on your Schedule C or 1120S, can depreciate a portion of the space if you own the building etc.IC's are people you pay on a per appointment or per hour basis. You set the fees, you collect payment, you may or may not provide X equipment and supplies, bring in the clients, etc. They work for you under terms agreed to by both parties.You can also consider bananas - charge rent on a per appointment basis. Your practitioners set their own fees, hours, do their own advertising, provide their own equipment and supplies. You charge them $X per hour of service booked on your premises or Y%.All of these arrangements have + and - for both you and them. It all boils down to who has what tolerance for what level of risk and responsibility.