Employee or subcontractor??

Discussion in 'Starting a Lawn Care Business' started by HartselleLawnEnforcement, Jul 14, 2011.

  1. HartselleLawnEnforcement

    HartselleLawnEnforcement LawnSite Member
    Posts: 99

    Hey guys, before you throw me in the lions den, understand I am COMPLETELY clueless in the whole employee deal..

    My business doesn't make a lot of money. Pretty much just enough for some spending cash, gas money, equipment repair, and after a month or so, new handhelds. I can also afford to pay somebody to help me.

    I DO have a business license, so I am legal, but I don't want to have to pay workers comp and the like... YET.

    So can I report that I am paying a subcontractor? Or would the IRS eat me alive? haha.

    Like I said, I'd rather not fill out all the forms and throw money at this when I don't really have an AWESOME income.. :)

    I will accept any and all advice! :waving:
     
  2. Mark Oomkes

    Mark Oomkes LawnSite Fanatic
    Posts: 11,859

    I would suggest a search, as this has been covered, oh about 7993 times.

    Short answer, how much money do you have saved for fines, penalties and back taxes owed?
     
  3. Agreen-go

    Agreen-go LawnSite Member
    Posts: 119

    Only way you can classify some one who does work for you as a sub contractor is if they have their own licenses, insurances,and equipment, and use absolutly none of your equipment unless they lease it from you.
    This is an area the IRS looks at really hard as many businesses do this to avoid having to pay their fair share of employment taxes and having to pay higher insurance premiums due to more employees.
    Be aware if you classify some one as a sub they better have their insurances straight or your insurance company will come after you to pay a higher premium to cover them.
     
  4. HartselleLawnEnforcement

    HartselleLawnEnforcement LawnSite Member
    Posts: 99

    lol sorry, apparently I hit the wrong search button.. couldn't figure out why nobody had ever brought it up! :confused:
     
  5. Mark Oomkes

    Mark Oomkes LawnSite Fanatic
    Posts: 11,859

  6. HartselleLawnEnforcement

    HartselleLawnEnforcement LawnSite Member
    Posts: 99

    I better just let them be employees. :laugh:
     
  7. Sweet Tater

    Sweet Tater LawnSite Silver Member
    Posts: 2,123

    stay solo till you just cant handle it, payrole and taxes are a pain in the ....
     
  8. HartselleLawnEnforcement

    HartselleLawnEnforcement LawnSite Member
    Posts: 99

    Thanks for the responses guys! It's unreal how willing everyone is to helping out. As for me, I'll be staying solo as long as possible! :)
     

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