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Bull
12-12-2004, 02:31 AM
I am thinking about trying this in my area next season, do you think it will work or not. Below is just a hypothetical model.

Buy a 48" w/b, 5x10 trailer, blower and trimmer
pick up 25 accounts at $32.00 each, $800.00 per week
Find one person interested in running the setup
He / she does all of the accounts solo
I take 25% of the money off the top = $200.00 per week
Solo operator provides their own vehicle and buys all gas, supplies, etc.
I'll pick up 25% of any repair cost (not maintenance) on trailer, mower, blower and trimmer
All accounts would be residential
I do the monthly billing for service
Basically I am looking at $800.00 a month for whatever amount of time it takes me to do the billing
Negatives are - what if they quit, who handles any complaints, finding the right person, and I am sure there are a few others. Do you think it makes sense to give it a try? I cannot take on anymore myself and I am trying to look at this in a different manner than adding on another crew. Basically this person would feel some ownership in what they are doing and in taking care of the equipment.

YardPro
12-12-2004, 05:17 AM
the idea is called having an employee.
you shoud take more of the money if you're furnishing the equipment.

also one gou could do those accounts in 2 days.
why not line up another 2 days work for him and pay him $500-600/week and you make $1000.00/week

seems like that would be the better deal for both of you.

i don't like the idea of you only taking 25%

Bull
12-12-2004, 06:21 AM
YardPro, some may disagree with this but part of my goal is that I do not want an employee. All of the numbers are hypothetical. The opportunity is there for the amount to easily double. One aspect of the idea though is to give the other person some degree of feeling as they are making very good money eventhough they are doing all of the labor I feel this may be an incentive for someone to stick with it and not hang it up in two months. I want it to be a win win situation for both of us. The problem I have had all season is that I have went through five different guys attempting to retain help. Believe me it is not long into the program that a new employee realizes what the owner is making versus what you are paying them an hour. What I was paying was very competitive in my area but most of them learned that they didn't mind making the same or a little less money per hour and be in an air conditioned environment. For myself I am going strictly solo next season. At least I am the one person I can depend on. I just feel that my idea provides someone with the opportunity to get into the business at a very good entry level, provides them with the sense that they have their own business to a degree and prevents them from having to lay out a lot of money initially.

tonygreek
12-12-2004, 10:08 AM
fully agree with yardpro, 100%.
i don't see any way that the economics of this, as presented, could possibly be worth the hassles. is this person going to be a sub for you or a partner? if a sub, you can't run it as you've suggested. if a partner, under this scenario, i see a very rough road ahead, as i think your $200 per week vs. fluid reality will not meet your expectations.

- what about insurance costs, phone, equip storage?
- $200 per week to cover all of your overhead expenses, including equip costs?
- who picks up those 25+ accounts? if you, that $800 per month for "whatever time it takes for you to do billing" is in all actuality nowhere near worth your time, effort, investment for $200 week, pre-tax. why not use that same amount of capital to either re-invest into yourself (training for new, higher-margin serviceline), or just pay a good part-timer signifcantly more to make him feel a larger part of the business, add those 25 accounts, and you still take home more than that $200.

best of luck, and please keep us up on how the process moves forward.

Bull
12-12-2004, 10:44 AM
Tonygreek, I can understand this being considered a waste of effort but let me bring up a couple of points. The $200.00 figure on my part could easily be $400.00 depending on the accounts. $200.00 was just used as an example. The billing at the end of the month on 25 accounts can be done in about 45 minutes to an hour easily. As for a partner or a sub he would not be either. He would probably fall into the category of a scrub. As for insurance he would need to provide that himself. My insurance cost $178.00 annually for a $1mm policy. As for storage he takes the equipment home with him. I have it covered under my policy for theft or loss. As for the phone everyone has one now days there again his phone his cost. As far as landing the accounts sure I would work to get those for him as I am currently maxed out and right where I want to be. I shuffled off several jobs to other friends in the business over the summer and as I said these accounts would only be residential and would probably fall in the category of being "tax exempt". My business name would not show on any invoices or be connected to him visably in any manner.

muddstopper
12-12-2004, 11:00 AM
Bull,
I had a person offer to do for me just what you are thinking about doing. I buy the equipment and he furnishes everything else, ie, truck,trailer, gas ect. He offered to do a 50/50 split. I didnt insult him by laughing in his face but I knew right away that this arrangement wouldnt work. I think I even posted the suggestion here for other comments. Basicly what my biggest fears are/where that the person running the equipment just wouldnt take care of it and the fact that I almost knew to a certainty that he would be out mowing lawns that I didnt even know about and sticking the cash in his pocket. Wearing my equipment out without giving me my cut. If you can find someone you can trust the deal could be a good money maker but how many people do you know that you would trust to do what they say they will. Another thought is why even get in a position where you are not in total control of a situation. Afterall, it is going to be your mower and your reputation as a lawncare company that is going to be on the line. The guy pushing the mower is just trying to make a buck.

mcclureandson
12-12-2004, 11:09 AM
Why not do it all yourself? How much do you pay your guy BEFORE you get a full 25 accounts? Running a LCO isn't like having a rental property...you have to be personally involved with every aspect until it gets large enough to sustain itself with some degree of stability...way beyond 25 or even 50 accounts.

tonygreek
12-12-2004, 11:27 AM
bull, the one thing you might be overlooking is the tax scenario for you in relation to him assumedly being your scrub. i'll assume you are operating above board for these discussions? since you are taking in the money, how do you plan on paying him? under the table or 1099? if it's under the table, you are on the hook for the full 100% of the venture's taxes. if it's a 1099, then under IRS guidlines of what a sub is, you would clearly be in violation.

having his own insurance also would cloud liabilities. i'm making this as an educated assumption, but since you are the true owner of the operation, he can have all the insurance he wants, but in the eyes of the law, i'm guessing you are the real liability holder here, given the convoluted ownership issues of the business, the equipment, the revenue allocation, and the irs classification of this guy. also, not knowing what your annual revenues are, you might want to check with your insurance agent to find out what % of gross you can spend on subcontractors. many are capped at 25% and you could find yourself dropped or not covered if the stars align in an unfortunate manner.

i think it's great you are thinking outside of the box, but i still hold to it not being worth the effort, especially with the additional stream of conscious thoughts i just threw out. obviously what i wrote above is just that, but they are points i'd find myself extremely concerned with.

- devil's advocate tony

Randy Scott
12-12-2004, 11:34 AM
I shuffled off several jobs to other friends in the business over the summer and as I said these accounts would only be residential and would probably fall in the category of being "tax exempt". My business name would not show on any invoices or be connected to him visably in any manner.

What does that mean? Tax exempt. I don't know your state tax laws, but you provide a service, you pay taxes. You might not charge sales tax on some services, but you pay taxes on the earned income. Also, you would somehow end up being connected to him. How would you direct your overflow work to him? If you have extra work, either gained from advertising or word of mouth, you WILL be connected to this person. Directing any work to him connects you. However it turns out, you'll have been the person to refer them. I don't see how you could dodge that bullet if it goes sour.

What you're proposing is almost a "silent partner" theory. You are the backing (somewhat) and someone else makes the money for you. If these customers will never know you, or who you are, who do they report to? The guy cutting the grass? So if this person has any ounce of brain, why would he pay you anything. All he would have to do extra is get the work himself, and pay for all the equipment. That would be the only difference from him working for you to owning his own company. If he fields complaints, does all the work, pays all expenses (except the minimal equipment costs up front), he's pretty much got his own business.

I see one of two things that can happen. First, the individual will either be a moron and it will fall apart halfway through the season because he won't be reliable, do poor work, and everything else associated with an idiot. Or, he'll catch on to what he's doing and realize that he can do the billing and get his own customers and bail on you as soon as he finds this out.

I know you're trying to figure out a situation to make a few bucks extra for minimal input. The problem is that really doesn't happen too often.
Think about employees. They are employees for reasons. They don't want the responsibility of running a business, dealing with the people, taking 100% responsibility for their actions, they need guidance day in and day out. They need the security of a steady paycheck. If they come in late, well they get yelled at and that's it. They move on. They need regular discipline to keep them moving forward. Directions for the day, the varied tasks they'll perform. And that's fine. We all need employees. I'm not saying that every employee has all these attributes either. I don't want to offend some of you here that are employees. You all have your reasons and they're not all negative reasons either. Some simply don't want to own or run a business. That doesn't make you a bad employee by any means. There's nothing wrong with making money and letting someone else have the headaches. I did it for 15 years. Some days it might be the better choice.

So then, you go to the other spectrum of an individual, someone who wants to call all the shots. For the little extra you would be providing wouldn't be much of a challenge to take on. Sure, the start would be tough to get work as opposed to you having too much work and an already established name.

I guess anythings possible with the right person and the right set-up. Just seems like this would be a tough one to pull off.

out4now
12-12-2004, 11:35 AM
Sounds great for you, how long do think they'd stay if you're taking 25% in a tight profit margin biz ? Not to mention the legal ramifications of them actually being an employee. Just set up a franchise deal instead and be legal. You get more market share through all the outlets and collect royalties plus initial fee.

Critical Care
12-12-2004, 12:01 PM
Interesting concept, but packed full of "buyer beware" flags. First of all, if you really want to pursue this, you definitely have to get legal papers drawn up by an attorney. An attorney could direct you towards a partnership or perhaps a corporate status, and then within this status could draw up the operating details.

I did this with a construction company partnership that I had a number of years ago. Having everything drawn out is worth it's weight in gold. Attorneys aren't cheap, but without the proper foundation for your business you'll be doomed right from the very start.

DiscoveryLawn
12-12-2004, 12:50 PM
Bull,
How about something like this ...

You pay a commission only. Say around %30 +/-. This way if a customer quits because they are dissatisfied the employee also takes a financial hit. Thus the employee has an interest in going the extra mile to retain customers without it costing you more in labor.

You supply all equipment and a trailor and pay for repairs.

The commissioned employee provides the maintenance of equipment as part of their commission agreement. (be sure to have checks and balances to make sure the maintenance is being performed)

The employee uses his own truck with insurance and you reimburse for mileage. (check with your insurance agent on this one)

You continue to control the scheduling, sales, billing, initial phone calls etc... The employee returns calls from his customer and handels the customers concerns directly. This way the customer has a personal relationship with the person that does the work thus building loyalty (that makes me think you should also have a well written non compete agreement).

I think you get the picture of the direction I going with this. I have thought about doing these things myself but never got past the concept stage. I no longer provide mowing services but if I had stayed with it this is what I was going to do.

Good luck.

David

eXtreme Lawns XLS
12-12-2004, 01:22 PM
We did tjis in year 2-3 and its killer .......we had a husband wife crew (friends of our for years) and I purchased a ferris 3000 mower and husquvarna small equipment and 6.5x12 trailer $ 13,000 .............their truck ....gas ect our business name .....or we thought .....about 8 months out we saw another truck with a dixion H.O z mower on it on our property, blowing grass directly into a flowerbed we JUST constructed...............we paid him enough to start his own company way to go us .......we let him go and saved that account thank god / $3500.00per month one man 5 hour total montly time ......over a year later we found out he had claimed to be US on a contract for $12,000.00.....which he had bid $8.000.00 on ........we went to court and when all was said and done he compinsated us 8300 of the 12 he made .(CONTRACTS= ALOT MORE THEN PAPER only when you need them and that job killed him he went out of bus. that year over 3 big jobs then had the gauze to ask us why........I said welcome to the real world .....if you cant do the job right dont take it on theirs more to it then looking professional IT is just safer to just hire an employee...pay him good and make him feel like he is part of a company not the hole company because he will begin running it like his if you do

bigz1001
12-12-2004, 06:34 PM
I could be wrong, but maybe I am not. However it seems to me that you are offering to "rent" this man a commercial mowing package for $xxx a week and take care of his billing (for a small charge I am sure). This person will operate under their own company name with no ties to you other than you are in charge of their billing and renting them equipment. I think this could be an excellent idea, and I am not sure about what liability everyone else is making out. Wouldn't this just be an additional $xxx income per week that you would pay taxes on, just as the other company would pay taxes on their income? Perhaps I am missing something.

Look at some numbers, you are looking at investing roughly $7,000 in equipment. If you charge them $350 per week($1,400 per month) for equipment rental (which they should be required to show proof of maintenance on). And say you charge them $50 per month for handling the billing for their accounts(not bad for 45 min in work). Then you are looking at an additional $1,450 in income before taxes. Still, assuming no taxes in 5 months the equipment you rented to them will be paid for on your end (since you did not have to pay any employees or purchase any fuel, maintenance, or repairs). And at the end of the season you can do whatever you want with this equipment, start another crew next year (equipment costs are paid for) or rent it out once again, or sell it for the value left in the equipment(perhaps an option for the person you chose?).

Who would I market this idea to? I would market this idea to a senior in high school. Making $350 a week after costs is better than making $100 a week flipping burgers, and do not have the capital to pay for equipment. Many are asking what happens when he goes around you. Since you will be handling billing as well as charging a flat fee for equipment usage, what do you care as long as your minimum is met each month.

I tried to make as much sense as possible, but maybe I didn't. Seems like a good idea to me.

YardPro
12-12-2004, 06:53 PM
Tonygreek, I can understand this being considered a waste of effort but let me bring up a couple of points. The $200.00 figure on my part could easily be $400.00 depending on the accounts. $200.00 was just used as an example. The billing at the end of the month on 25 accounts can be done in about 45 minutes to an hour easily. As for a partner or a sub he would not be either. He would probably fall into the category of a scrub. As for insurance he would need to provide that himself. My insurance cost $178.00 annually for a $1mm policy. As for storage he takes the equipment home with him. I have it covered under my policy for theft or loss. As for the phone everyone has one now days there again his phone his cost. As far as landing the accounts sure I would work to get those for him as I am currently maxed out and right where I want to be. I shuffled off several jobs to other friends in the business over the summer and as I said these accounts would only be residential and would probably fall in the category of being "tax exempt". My business name would not show on any invoices or be connected to him visably in any manner.

there are several non arguable points here.
YOU are liable for his work, no if's ands or butts.
unless you set yourself up as his billing service, YOU own the business and YOU are liable.
as for your last part WHAT YOU ARE SAYING IS ILLEGAL.

There is much more than just 45 min. of billing involved with what ou are proposing. If you procure the work and provide the equipment he IS an employee. When does he get paid? If you pay him before you get the money from the customer, he is YOUR employee. Just the apsect of you financing his pay and taking the risk of deliquent accounts or charge offs, You are assuming alot of liability just in that aspect.

sounds alot like how taxi operations are run.
the owners are required to carry all the liability insurance.
I know becuase my friend was involved in a wreck in a cab and the owner of the business had NO INSURANCE.

Carolina Cutter
12-12-2004, 07:46 PM
YardPro, some may disagree with this but part of my goal is that I do not want an employee. All of the numbers are hypothetical. The opportunity is there for the amount to easily double. One aspect of the idea though is to give the other person some degree of feeling as they are making very good money eventhough they are doing all of the labor I feel this may be an incentive for someone to stick with it and not hang it up in two months. I want it to be a win win situation for both of us. The problem I have had all season is that I have went through five different guys attempting to retain help. Believe me it is not long into the program that a new employee realizes what the owner is making versus what you are paying them an hour. What I was paying was very competitive in my area but most of them learned that they didn't mind making the same or a little less money per hour and be in an air conditioned environment. For myself I am going strictly solo next season. At least I am the one person I can depend on. I just feel that my idea provides someone with the opportunity to get into the business at a very good entry level, provides them with the sense that they have their own business to a degree and prevents them from having to lay out a lot of money initially.


IRS Rules.......state that if you supply the equipment to do the job, tell the person what jobs to do and when to do them they are OFFICIALLY an employee!

bigz1001
12-12-2004, 07:55 PM
Not if he "rents" the equipment to the seperate company.

out4now
12-12-2004, 08:05 PM
Not if he "rents" the equipment to the seperate company.

Aren't you still supplying the work though?

YardPro
12-12-2004, 08:14 PM
no matter how you try to wiesel around it he is your employee.

you provide the work, you do the billing you pay the worker, you own the equipment......

you're asking for trouble.

instead of wasting all this energy on trying to wiesel around the law, why not invest the time into something that will be on the up and up, AND make you money.

from what you're saying, why should any guy work for you?? he has to carry his own insurance, use his own vehicle, pay all the fuel, etc, pay for the equipment....
AND then pay you 25%??
WTF? why would he not just do the accounts himself.
since your business name, etc will "never be connected" with the properties, what's to dtop him from hijacking the accounts?? sounds to me like he will be running his own business and paying you a 24% finders fee and billing fee.

bigz1001
12-12-2004, 08:32 PM
from what you're saying, why should any guy work for you?? he has to carry his own insurance, use his own vehicle, pay all the fuel, etc, pay for the equipment....
AND then pay you 25%??
WTF? why would he not just do the accounts himself.
since your business name, etc will "never be connected" with the properties, what's to dtop him from hijacking the accounts?? sounds to me like he will be running his own business and paying you a 24% finders fee and billing fee.

Have you never contracted work out? Why would anyone do it? TO make more money per week than they currently can. As I mentioned the Senior in High School who is lucky to make $100 a week flipping burgers. Perhaps someone who is considering trying their hand at the lawn care buisness and doesn't want to invest to capital or doesn't have to capital to outfit their own rig. Maybe a retire individual who has nothing else to do during the week and can use the extra $xxx.

Do you ever rent equipment? How would this be any diffrent? Seems like a descent idea to me that needs the details ironed out.

Critical Care
12-12-2004, 11:59 PM
bigz1001, I'm a contractor. There is no other person or company sharing in the profits that I make. I keep my own hours, my own tools, and my operation is not dependent upon any other person. When another person begins to share in the profits, then it becomes a partnership. And when another person controls my work, I then become an employee - as YardPro was pointing out.

Of course you can rent out your equipment, but when you start sharing in profits off of the work that this crew does, you've then engaged into a partnership. Nothing wrong with partnerships. There are some advantages, such as not paying workman's comp on partners.

YardPro
12-13-2004, 08:01 AM
here's a quote from landscape ****


"I guess I'm officially out of a job. I didn't get fired. Let me explain...

My boss has been sentenced to three years in prison basically for not claiming his employees as "employees". Rather he'd called us all subcontractors and send a 1099 and never take any taxes or Social security out. There are a few other things that he did that were not exactly legal. The IRS finally caught up with him. We had no idea the IRS had been monitoring him for a while now. He was arrested, convicted, and sentenced on counts of tax evasion and other minor criminal violations of the internal revenue code. Do any of you guys do anything like this? If you do, please correct it!!! The IRS is really cracking down hard on this.

Ethan Connor"

there is also antoher on there where a guy working for a company tells about his boss being fined almost $60,000.00 for not paying overtime.

YardPro
12-13-2004, 08:10 AM
Have you never contracted work out? Why would anyone do it? TO make more money per week than they currently can. As I mentioned the Senior in High School who is lucky to make $100 a week flipping burgers. Perhaps someone who is considering trying their hand at the lawn care buisness and doesn't want to invest to capital or doesn't have to capital to outfit their own rig. Maybe a retire individual who has nothing else to do during the week and can use the extra $xxx.

Do you ever rent equipment? How would this be any diffrent? Seems like a descent idea to me that needs the details ironed out.

of course we sub work out, but they are individual jobs, not constant recurring work.

and the same is for the equipment.

you can try and justify your plan all you want, but what your doing is illegal. no if's and's or butts

what happens when the guy does a crappy job, or decides that he does not feel like working for a few days..... happens alot with young kids???
as a sub contractor there are no reprocussions .. you can't do anything except find someone else.

All it will take is him figuring out that he could now do the work for himself and make even more money, since you have no affiliation with the houses, he can swipe the work from you and there will be no recourse on your part.

if you guys get in an argument and he calls uncle sam, you'll be in big trouble.

from your earlier posts you are intentionally trying to avoid paying the taxes on the work. The auditors are pretty smart cookies, and will figure this out in a heartbeat. they are even offering rewards now for tax fruad.

Carolina Cutter
12-13-2004, 08:53 AM
Not if he "rents" the equipment to the seperate company.

He can rent them anything he wants. If he "TELLS" them to go here, do that, and do it today....they are employees......that is a really touchy situation with the IRS.

bigz1001
12-13-2004, 09:08 AM
QUOTE]

All it will take is him figuring out that he could now do the work for himself and make even more money, since you have no affiliation with the houses, he can swipe the work from you and there will be no recourse on your part.

if you guys get in an argument and he calls uncle sam, you'll be in big trouble.
[QUOTE=YardPro]
from your earlier posts you are intentionally trying to avoid paying the taxes on the work. The auditors are pretty smart cookies, and will figure this out in a heartbeat. they are even offering rewards now for tax fraud.

Now you are making things up, show me where I said anything about not paying taxes.


you can try and justify your plan all you want, but what your doing is illegal. no if's and's or butts

How is renting out equipment in any form illegal? If you know of a way let me know. Have you ever rented a skid steer, was that illegal activity?


what happens when the guy does a crappy job, or decides that he does not feel like working for a few days..... happens alot with young kids???
as a sub contractor there are no repercussions .. you can't do anything except find someone else.

Not everyone under the age of 30 is lazy, contrary to popular opinion.



All it will take is him figuring out that he could now do the work for himself and make even more money, since you have no affiliation with the houses, he can swipe the work from you and there will be no recourse on your part.

Have I not been saying this all along? Let the person get their own business license, insurance, and any other requirements for your area. Then they are a legitimate business. Now they need equipment. Rent them your "lawn-care professional package" for $xxx per month. If the equipment is all new, charge enough per month where it will pay for itself in entirety in less than one season. If the equipment is used, take the approximate remaining value and do the same. (On a side note I do not know the tax liability here. I know you would have to pay taxes on the income, but I do not know for 100% whether or not you could claim the equipment on your taxes for a break.)

As for supplying the lawns, this is where another contract would come in handy. If you supply the lawns a contract stating that the person would pay royalties to your company for as long as they service the address would be your best action of recourse. And there has been nothing illegal done at all.

What are the benefits? You no longer have the added liabilities of an employee, yet you have the additional income for every season.

Now, show me anything here that is illegal (notice I never said anything about not paying taxes).

out4now
12-13-2004, 10:24 AM
Sounds like a franchise to me. I'm interested in what a lawyer would have to say about it because you're blurring the lines of employee and contractor. I'd also like to see some input from the highschool kids from the board to see what they think of your idea. They're probably still taking finals so they won't post till this afternoon. Get the reaction from the target audience. Market research is always good.

Randy Scott
12-13-2004, 11:16 AM
The big issue here isn't going to be the legalities, you'd be able to get something with that figured out. The key issue is going to be what every business struggles with, quality work and quality employees. Therefore, your headache stemming from this scenario is going to be quality issues, as it always is. The fact the individual isn't taking ALL the money is going to leave the door open for excuses over quality, plain and simple.

You're one of two people, a leader or a follower. A leader will have is own business, a follower will be employed. Someone in this scenario is of the follower thinking, if not, it would all be on their own. You've now created a position for an employee with no supervision.

Like I said before, it's not impossible for this scenario to work. It's the odds that it will work. Just like we all have a chance to win the big lottery, it's just the likelihood of it happening is slim to none. So the scenario put forth is possible, just not probable.

Turf Medic
12-13-2004, 11:27 AM
How will you know that the person is not mowing yards that you are not aware of, you won't then get your cut? Also where the person you hook up with will have the only contact with the customers, what will keep him letting you take all the risk as far as equipment and start up costs and then replacing it with his own, once the route is profitable?

tonygreek
12-13-2004, 11:50 AM
bigz, i do believe yardpro was referring to "bull", the originator of this thread as the one trying to avoid taxes.

as for the issues of renting the tools, etc, i think this is moving far away from what bull seems to want to do: make easy money without headaches ($200+ week for just billing the work). as everyone seems to have pointed out, that's not likely.

Critical Care
12-13-2004, 01:24 PM
Bull's "hypothetical model" in his original post is a partnership. Both are sharing in the profits of the business. Partners can have different percentages of interest within the company, different percentages of profit, different job descriptions, and so forth. And, by the way, it is very very very tough sustaining a partnership like this because people typically are out for their own interest rather than that of the partnership.

lawnlubber
03-25-2005, 09:14 AM
I picked this thread up when searching something else, heres my .02.
I think it works if you set it up as an equipment rental deal with a finders fee for enough clients to set up a route. Let the new guy rent the use of your computer to bill his own accounts. Encourage him to find other work besides what you give him as any contractor would do. I think this would help settle questions the IRS has over employee status. If I understood the original post in the thread you already have as much work as you can handle and are not interested in hiring an employee. You have already had to turn away work and would like to have helped another get started with those jobs. I am thinking of downsizing by shedding my weekly mowing and focusing on the high end work. My employee could rent my mowers and go solo. We would do different work, so no competition. He is responsible for everything I used to do, estimates, bills, repairs, taxes, and a monthly bill for his equipment. You tax and legal experts out there- if he acts as a solo justs rents my equipment and pays a fair price for each account I give him do we still have a problem?