sales rep

[rgiraldo]

Ok I have a queation I hope someone can answer. I have an old coworker that lives 2hrs from me. And this guy is getting work. How ever he does not hold a lic and he contacted me to find out if I would join him and use my lic.

Now being so that he finds the work and I will be using my lic should I give him a finders fee and have him as a 1099. what would you guys think is best. And at what percentage.

I was thinking 1099 because he could write off his own expense. But he would be riding on my workers comp.

I would be working with him and supervising some jobs.

Thanks

 

[ceb58]

Ok I have a queation I hope someone can answer. I have an old coworker that lives 2hrs from me. And this guy is getting work. How ever he does not hold a lic and he contacted me to find out if I would join him and use my lic.

Now being so that he finds the work and I will be using my lic should I give him a finders fee and have him as a 1099. what would you guys think is best. And at what percentage.

I was thinking 1099 because he could write off his own expense. But he would be riding on my workers comp.

I would be working with him and supervising some jobs.

Thanks

If he is going to be working with you and be covered under your WC then he would be classified by the IRS as a bonafide employee and you cannot 1099 him.
If you and he come to an agreement on him finding the work and passing it on to you for a finders fee then he could be classified as a consultant and could be 1099'ed

 

[LarryFine]

Who would be doing what work?

 

[rgiraldo]

Both, however some jobs he will be solo. I just need to figure out a percentage to pay himfor finding the job.

and I was thinking of 1099 him because he can make more. But if he needs to be on the books I need to pay him a good wage. However it will cost me more plus WC

 

[LarryFine]

It almost sounds like a partnership might be better than a "master/slave" relationship.

If he wants to share the benefits, he should also be willing to share the responsibilities.

 

[RETRAINDAILY]

HERE, You could have him get a " Fictitious Business name" .
then you can make checks too his business.




http://www.bing.com/search?q=Fictitious+Business+name&src=IE-SearchBox&FORM=IE8SRC

 

[RETRAINDAILY]

As far as percentages, ask him what he wants out of it ($$ amounts) and put it in your quote. or add it to the bill.

 

[growler]

I was thinking of 1099 him because he can make more. But if he needs to be on the books I need to pay him a good wage. However it will cost me more plus WC

It doesn't work like that anyway. If you have workman's Comp Insurance at the present then you must account for all money that you pay out to anyone and this includes all sub contractors. If the said sub contractors don't have their own workman's comp then you end up paying for it.

You may be able to set up some sort of corporation and work under a corporate name and then have him as an officer of the corporation.

The best thing would be for your friend to get his own license because the sort of deal you are thinking of doesn't work out most of the time. NO one is ever satisfied with their share of the money ( I'm saying this from personal experience ).