Welcome Guest. Sign in or Signup

5 Answers

What do I need as an independent contractor CFI?

Asked by: 49489 views
Flight Instructor

I am looking to work in Nevada as a 1099 CFI for a flight school. The FBO admin says he wants to charge the client for the plane and I take payment from the student for the flight training. I have CFI insurance from aopa and the plane has insurance With the school. I plan on making 20% quarterly payments to the irs. What else do I need to pay? Do I need to get a workers comp policy? Anything else to be legal?

Ace Any FAA Written Test!
Actual FAA Questions / Free Lifetime Updates
The best explanations in the business
Fast, efficient study.
Pass Your Checkride With Confidence!
FAA Practical Test prep that reflects actual checkrides.
Any checkride: Airplane, Helicopter, Glider, etc.
Written and maintained by actual pilot examiners and master CFIs.
The World's Most Trusted eLogbook
Be Organized, Current, Professional, and Safe.
Highly customizable - for student pilots through pros.
Free Transition Service for users of other eLogs.
Our sincere thanks to pilots such as yourself who support AskACFI while helping themselves by using the awesome PC, Mac, iPhone/iPad, and Android aviation apps of our sponsors.

5 Answers



  1. Clark Hall on Apr 02, 2014

    Check on state taxes. In the case you describe you are not a 1099 for the school you are your own company. Check with your State Labor Commission on the workers compensation in some states you don’t have to buy it, but it is a good idea. You could call an accountant for advise.

    0 Votes Thumb up 0 Votes Thumb down 0 Votes



  2. Steve Butler on Apr 03, 2014

    Nevada requires a business license as does Clark County. If you are not from the Las Vegas area, you should check with that county. I believe that you can sign up for both on line. The state license is $200/year and you might try http://www.nvsilverflume.gov for more info or to apply.

    0 Votes Thumb up 0 Votes Thumb down 0 Votes



  3. Earl Kessler on Apr 05, 2014

    As an instructor in Nevada, I would recommend that you also set up an LLC and use a waiver of liability form signed by each student prior to the first lesson. If they are a minor, also have parental approval on the waiver. You are welcome to contact me if you wish to discuss how I do it in NV.

    0 Votes Thumb up 0 Votes Thumb down 0 Votes



  4. LTCTerry on Apr 06, 2014

    A 1099 is for payments from an entity to you. If your flight students/customers are paying you directly, then you will not get a 1099 from the FBO; the FBO didn’t pay you.

    A quick google search on the terms CFI independent contractor will take you a number of pages from reputable organizations that will help you understand the differences between an employee and an independent contractor. The FBO admin can’t simply say, “Oh, we’re going to call you an independent contractor.” If the FBO provides headsets, intercoms, hoods, business cards, or puts your name on a website without the words “independent contractor” then you are likely an employee. Do you have to hang around “in case someone comes in with a question?” You are an employee. Do you have to attend meetings? You are an employee.

    There are many good reasons for someone to want to be an independent contractor. However, just because the guy who owns the rental fleet says you are one doesn’t make it so. That’s actually illegal.

    In addition to income tax to the IRS, you will need to pay just over 15% in social security “contributions.” If you are self employed, you get to pay the employer’s part along with the employee’s part.

    By the way, the AOPA’ Training magazine page about independent contractors is incorrect when it mentions uniforms. Any uniform worn instead of regular clothing is not deductible. An airline pilot cannot deduct the cost of a uniform other than the cost of the braid, wings, and other things that turn a suit into a uniform. An example of how strict the IRS is on uniform deductions, active duty soldiers cannot deduct the cost of uniforms because they are worn in lieu of what would be non-deductible clothing for a civilian job. Reservists are required to have uniforms IN ADDITION to the civilian clothing they wear to work Monday to Friday, so their uniforms are deductible.

    0 Votes Thumb up 0 Votes Thumb down 0 Votes



  5. Sam Dawson on Apr 07, 2014

    In most states an LLC will do nothing for you except cost you money. You are still in the eyes of the law a sole proprietor and, as such your assets (with some exceptions), are still “fair game”. Where an LLC can help is in situations where there is a true “corporation”, say a number of CFI’s. If one CFI does something the other CFIs are protected.
    I am not a lawyer, so maybe someone like Mark will chime in.

    -1 Votes Thumb up 0 Votes Thumb down 1 Votes


The following terms have been auto-detected the question above and any answers or discussion provided. Click on a term to see its definition from the Dauntless Aviation JargonBuster Glossary.

Answer Question

Our sincere thanks to all who contribute constructively to this forum in answering flight training questions. If you are a flight instructor or represent a flight school / FBO offering flight instruction, you are welcome to include links to your site and related contact information as it pertains to offering local flight instruction in a specific geographic area. Additionally, direct links to FAA and related official government sources of information are welcome. However we thank you for your understanding that links to other sites or text that may be construed as explicit or implicit advertising of other business, sites, or goods/services are not permitted even if such links nominally are relevant to the question asked.