In theory, yes -- but the IRS defines an independent contractor, basically, by their work relationship with you. If you control scheduling, precise tasks, etc. then you are very likely an employer. If you hire someone for a specific job and they control the specifics, and don't work solely for you, then it's likely that they meet the definition for an independent contractor. When in doubt, talk to a tax professional; ignorance of the law never excuses one from the consequences, and you definitely don't want to get in trouble with the IRS :).
Obviously, this is a US-based standpoint. I have a writing group of independent contractors, but they have the opportunity to accept or refuse every job, and are paid specifically for that job. There is no agreement or contract beyond that, and I can't control when and how they do it as long as they meet their deadlines.
You cannot hire full time people for an extended period of time as independent contractors. It needs to be part time or for a short period of time.
Yes, as long as the independent contractors are truly independent contractors.
There are strict laws defining who is an employee and who is an independent contractor. As long as the company follow the laws, then yes.
A corporation is a person (just ask Majority Leader Johan Bhoner!), so if YOU can hire only "independent contractors" to work on your house (rather than actually EMPLOYING them), then of COURSE they can...
Yes. A company is a separate legal entity and can conduct its business any way it wants within the law. It is likely to have a proprietor or a couple of directors who are on the books of the company but, otherwise, it can outsource everything if it wants.
Under UK employment law, there are tests to determine whether a contractor is, legally, an employee - depending on who gives instruction of how to do the job, whether the contractor also work for other people ... that sort of thing. If you are not in the UK, I do not know whether your employment law has a similar test.
you don't 'hire' independent contractors, you 'contract' with them
this would be the legal way to do it
far too many employers want to skip out of the obligations of an employer and use people and pay them cash, this absolves him of the FICA matching, covering with workmen's compensation, paying into the unemployment fund etc.
the SS8 at www.irs.gov is the form to submit to determine if you are or are not an employee or an independent contractor
As long as the people doing the work meet the IRS definition of independent contractors, there's no reason that a company can't do that.
