Growing a Contracting Company

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JOHNEO99

JOHNEO99

Senior Member
Location
Northern Illinois
Hello all


I have been a one man shop for three years now and want to hire a helper due to a back log.

My question is about how I should go about paying an employee. Can I stay a sole proprietor and pay a helper then 1099 him at the end of the year or is there a better way of doing a payroll.

Any other insight on starting/growing a company would be appreciated.

Thanks in advance.


JOHN
 
It is usually not legal to 1099 a helper. In MA it definitely is not. A helper must be an employee and you will need to take payroll taxes out. You will need workers comp. Payroll taxes are no big deal. A payroll service can do it or your accountant should be able to advise you. You certainly can stay a sole proprietor. There's no reason not to.

edit: there is a duplicate thread going on, fwiw.
 
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