Establishes criteria for bona fide business entities in Massachusetts to encourage small business growth.

This bill amends the General Laws by adding a new chapter defining bona fide business entities. It specifies that a business entity providing services under a written contract is not considered an employee for tax and labor law purposes if it meets certain criteria. These include being registered with the Secretary of the Commonwealth, reporting employee compensation to federal and state tax authorities, and complying with federal and state tax, unemployment insurance, workers’ compensation insurance, and labor and employment laws.

Establishes criteria for bona fide business entities in Massachusetts to encourage small business growth.

This bill amends the General Laws by adding a new chapter defining bona fide business entities. It specifies that a business entity providing services under a written contract is not considered an employee for tax and labor law purposes if it meets certain criteria. These include being registered with the Secretary of the Commonwealth, reporting employee compensation to federal and state tax authorities, and complying with federal and state tax, unemployment insurance, workers’ compensation insurance, and labor and employment laws.