Well the question you have to ask yourself is whether you're going to hire a subcontractor (1099, no workmans comp or taxes needed) or do you want a legitimate employee.
If you want a legitimate employee you need to become licensed and insured, then you need workmans comp. I agree with McFarland, let you accountant or business help do the paperwork.
Best Impressions Lawn Care - est. 1998
2 operations in different cities
(Expansion is awesome)
48" Grandstand and 52" Stander X
2 44" Toro WB's
Shindaiwa weed eaters
Stihl Backpack Blowers
Stihl and Husqvarna Chainsaws