Originally Posted by Element Property Mgmt
the reason i pay cash is because i only hire one of my friends to help out when it's necessary otherwise i just work alone. i do not have enough business to do this full time so i am only part time right now, and obviously by paying cash and running solo i dodge all sorts of bullets i'm not quite ready for; having people file w2's, unemployment, workmans comp, insurance... etc i'm sure you all know this. i do have insurance, an llc, and ein etc so i am legit, i pay taxes unfortunately haha.
Well, not sure of the policies in Wisconsin, but it sounds like you are most definitely bending if not just flat out breaking the law.
How much does this guy make? If it's over $600 per year, he is an employee. There is no way you can consider him a subcontractor. So you should be paying taxes on his income and unemployment, etc. You might be required to carry WC on him as well.
Just because you are an LLC and have an EIN does not make you legit.