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Help me figure this out!?!

Discussion in 'Lawn Mowing' started by Duncan IN, Jan 17, 2002.

  1. Duncan IN

    Duncan IN LawnSite Member
    Posts: 149

    Ok here is my situation.

    I am going into my third year of the Lawn Care Business, I currently have a guy in HS who has helped me partime the past two years. This year he is going full time working with me and I am adding another guy who is going to use his ton truck and I am going to supply the Mowers, Trailer, and Lawns that I have picked up over the past two years, etc... Do I have to have workmans comp for the new guy? I am trying to avoid it and was also wanting to know if I sub out the work to him would this be a way to avoid workmans comp. Example, he gets his own Liability Insurance, Business cards, etc. I give him the Yards and equip. but have him pay me for a certain percentage of what he brings in, say 55% He brings in $1,500 (100%) a week and I make $825(55%) of that and he makes $675(45%). All he does is supply truck and labor and he is on his own. I maintain the equipment though. Is this something that is possible or do I have to hire him under me and have to get workmans comp for both? Sorry if some of this doesn't make sense. I am just trying to figure out which way I should go. Any info given would be greatly appreciated. Is there also another way I could set this up?
  2. Chuck Sinclair

    Chuck Sinclair LawnSite Senior Member
    Posts: 336

    IMO Your looking for trouble here. I think i would just get the comp and pay him as an employee.
  3. 65hoss

    65hoss LawnSite Fanatic
    Posts: 6,360

    A dixie chopper flyer out about 1 or 2 years ago had a big article of a guy that does this. Has several crew that work this way. He was in upper middle TN I think. I remember I found his phone # to call him to ask some questions, but I never did. I'll see if I can find it before I leave for St. Louis in a few hours.

    LGF, hold the snow off for me!;)
  4. Duncan IN

    Duncan IN LawnSite Member
    Posts: 149

    Hey!! I read that article 2 years ago in the Dixie Chopper Brochure. I remember the guy saying that he had people lined up to work for him. He gave them a percentage too. I tried to save that brochure but I lost it in moving, his # was on his shirt. If you find his # Let me know. Thanks Have a safe trip
  5. strickdad

    strickdad LawnSite Senior Member
    Posts: 544

    im with chuck i see trouble down the road i have already been there and it ended up costing about 60,000 dollars. stay away from this type partnership it wont work.....
  6. bruces

    bruces LawnSite Senior Member
    Posts: 648

    Do you need workmen's comp?

    Ask your insurance agent, lay out the scenarios and find out your options. Probably very few people on here can give you an answer to an insurance question that would be accurate in various situations, given all the possible variables & different state laws.

    That advice is part of what you are paying the insurance agent for.

    As far as whether, the different scenarios will work from a business stand point, I'd stay away from the split arrangement, seems like you would lose control of the jobs but still be responsible.
  7. walker-talker

    walker-talker LawnSite Platinum Member
    from Midwest
    Posts: 4,771

    Technically, a sub contractor has to use their own equipment (from what I have heard). But on the other hand, you don't have to turn in the name of the subs to the IRS. I would not do it because they will not be covered on your insurance.

  8. kris

    kris LawnSite Bronze Member
    from nowhere
    Posts: 1,579

    Give him a while to get to know your customers, property's and prices ....he already now has business cards and insurance.... next a bit of cash to buy his own trailer and mowers..
    %100 for him % 0 FOR YOU. Good luck
  9. 65hoss

    65hoss LawnSite Fanatic
    Posts: 6,360

    Duncan, I left you a PM.
  10. Duncan IN

    Duncan IN LawnSite Member
    Posts: 149

    Got it, thanks 65hoss

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