Liability. A company would rather sign a contract with a known company that they already have a business relationship with. There is also the issue of “Miscla

Liability. A company would rather sign a contract with a known company that they already have a business relationship with. There is also the issue of “Misclassification of Employees as Independent Contractors Under the Fair Labor Standards Act” https://www.dol.gov/agencies/whd/flsa/misclassification https://www.dol.gov/agencies/whd/flsa/misclassification Under this arrangement, the company is protected.