Gig Economy Business v. Gig Economy Worker
Updated: May 17, 2020
I help people start and run gig economy businesses. A gig economy business is different than a gig economy worker.
A gig economy worker is a person who joins a company that allows her to work as an independent contractor in a manner similar to an employee. Think of Uber or Lyft drivers. A gig economy worker is not a stand-alone business because she relies on another company to provide a platform for finding and scheduling work and collecting payments. Gig economy workers typically do not need legal services to help them start and run their jobs.
A gig economy business, on the other hand, is a stand-alone business that consists of finding and engaging in “gigs” to make money. A gig is a project, usually to provide services to a client. A gig economy business makes money on a project-by-project, contract basis. Gig economy businesses are often labeled as independent contractors, consultants, or freelancers. They are not usually started to obtain investment money, to set the business up for a public offering, or to sell the business (except when the owners are ready to exit the business, such as for retirement). Gig economy businesses are nimble and lean. Many have only one or two owners. They may work from home, other remote locations, leased workspaces, or their client’s offices.
You might start a gig economy business at some time in your life. If you work as an employee in the service industry, you might open your own business to provide those services. Or, you might decide to strike out on your own by opening a service business, even if you don’t have any experience.
I have been helping people start and run gig economy businesses before that term was coined. Gig economy businesses I have represented include: software developers, website developers, cybersecurity consultants, IT consultants, architecture consultants, data analytics consultants, defense consultants, military and law enforcement consultants, firefighter consultants, healthcare practice management consultants, marketing and advertising experts, subject matter experts, personal fitness trainers and instructors, graphic artists, commercial photographers, commercial videographers, physicians, lawyers, engineers, pool service company, custom cabinet maker, kitchen and bath cabinet installer, construction subcontractors, auto mechanics, and Handymen.
Gig economy businesses need legal services to help them form legal entities, protect intellectual property, contract with clients, and resolve disputes with clients.