Building a local services marketplace (like TaskRabbit) - want to make sure I’m structuring it legally
Hi all, I’m building a small local services platform in California and wanted to sanity-check the legal structure before scaling.
The idea is a marketplace that connects customers with independent contractors for things like moving help, cleaning, deliveries, and small jobs.
The platform:
• Connects customers with local providers
• Handles booking + payments (customers pay through the platform)
• Takes a percentage-based fee (currently structured as an “activation fee” that goes toward the total job cost)
• Providers are not employees — they choose which jobs to accept
I’m trying to understand the main legal risks and how to structure this properly, specifically:
1. Worker classification (California / AB5)
How do platforms like this properly classify workers as independent contractors vs employees?
2. Liability
If something goes wrong on a job (damage, injury, etc.), what protections should the platform have in place?
3. Payments / compliance
Are there any concerns with handling payments and taking a percentage (Stripe Connect setup)?
4. Insurance
What types of insurance are typically required or recommended for this kind of platform?
5. Terms of Service / agreements
What are the must-have clauses for both customers and providers?
I’m not trying to cut corners, just want to build this the right way from the start.
Any guidance or things I should watch out for would be really appreciated.
Location: Bay Area (California)