What should I prepare for a buyer about my cleaners' independent contractor status?

A buyer will want to know exactly how your cleaners work with you, because the arrangement affects costs and risk. Start by writing down the facts for each person: who chooses the days and jobs, who provides supplies, how they are paid, whether they use their own insurance and whether they also clean for others.

Gather the paperwork. That includes written agreements, invoices from cleaners, payment records and any correspondence about the terms. If the arrangement is only verbal, say so. A buyer will find it out anyway. Be ready for the harder question: is the arrangement really what it says it is? The answer depends on rules that your lawyer and your accountant can explain, so ask them now, not after an offer arrives. If something needs fixing, ask them what steps are sensible and how they would affect the sale. Finally, think about the transition. A buyer may want to keep the arrangement, change it or move cleaners into another form of working. Tell the buyer how cleaners might react, and what you know about their wishes. Honest preparation builds trust, and it gives you time to fix problems on your own terms before a buyer finds them.

Key takeaways

• Write down how each cleaner is scheduled, paid and equipped.
• Collect agreements, invoices and payment records in one folder.
• Ask your lawyer and accountant to review the arrangement before a buyer does.