Contractor vs Employee
The distinction between hiring someone as a flexible contractor or as a permanent employee.
Contractors offer flexibility and lower commitment but less control and continuity; employees bring commitment and integration but carry obligations like PAYE, pensions and employment rights. Early startups often mix both, and must classify each correctly for tax and legal reasons.
Examples
A startup uses contractors for design and employs core engineers. — Misclassifying a worker creates legal risk.
How it relates to The Startup Foundry
The Team Report helps you think about team composition as you build an investable company.