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
(7 years previously under different name/ownership)
'11 Toro Grandstand - 48" 24HP Kawi
'09 Exmark TTHP - 48" 19 HP Kawi
2 44" Toro's (300 series ZTR and ProLine WB)
Shindaiwa weed eaters
Stihl Backpack Blowers