AB5 plan for software engineer contractors

Question

AB5 will be here in California in 2020. Exemptions for engineers are those who are licensed engineers, such as civil engineers. Does not apply to software engineers.What are software engineer contractors going to do?Is 1099 not going work anymore as a method?What if I do a project not in my clients principal business? Example: what if I work on intranet software projects while the company's primary business is selling widgets?If I setup an LLC or S Corp and pay myself as an employee, is this a valid approach to remain independent?I'm seeing news stories about people like 1099 freelance writers, etc. being told they won't be used or have to be converted to employees.What about all the 3rd party W2 tech staff firms that supply contractors as middle man to many companies?Any fellow CA folks have their approach nailed down or even known a good lawyer that has this worked out for software consultants?

SenorSean · Accepted Answer

I'm in the same boat - frantically searching for answers on this matter. In fact I'm in the process of uprooting my family in CO, to move to CA. I have always worked W2, but am starting a business doing independent contracting as a software developer and was hoping to create and grow this business in CA. I'm in also in the process of setting up an S Corp in CA, but from what I've read this doesn't change the fact that I will need to be considered an IC under AB5. I'm trying to figure out if this new law throws a wrench in all of my plans or makes it harder for me to find work. I'll reply to this post if I talk to a lawyer in the next week or two.I'm also curious if this just applies to companies based in CA that are hiring software devs as IC's or if it also affects software developers that are working as IC's with companies outside of CA.