As a new business owner in Sioux Falls, I've been told that I should consider all of my workers to be "independent contractors." Is this true?

No. Most small business owners worry about initial start-up costs and continuing overhead expenses.

One popular "myth" that small business owners often hear is that designating your workers as "independent contractors" and not as "employees" is a great money-saving technique.

However, there are strict legal definitions of employees and independent contractors.  And any business that incorrectly classifies its workers can create significant legal liability relating to taxes, workers’ compensation, wage-and-hour issues, and unemployment insurance.