The IC should have all business permits, certificates and licenses needed to perform the work. For example, if you hire an IC to perform construction work, the IC should have a contractor’s license if one is required by your state’s law. Lack of such licenses and permits makes a worker look like an employee, not an IC in business for himself or herself. The IC should obtain such licenses and permits on his or her own; you should not pay for them.
Suggested Language
Business Permits, Certificates and Licenses
Contractor has complied with all federal, state and local laws requiring business permits, certificates and licenses required to carry out the services to be performed under this Agreement.