Subbing out work

[zappy]

I have a job that involves digging. I've never subbed out work before. How do I do this legally. Do they have to be a licensed company? Make a sub-contract agreement, then 10-99 them? Thank you for your help.

 

[nakulak]

to cya they should be licensed and insured

yes on the 1099

 

[mcclary's electrical]

I have a job that involves digging. I've never subbed out work before. How do I do this legally. Do they have to be a licensed company? Make a sub-contract agreement, then 10-99 them? Thank you for your help.

Your workmans comp, contractors license and liability insurance all demand you hire licensed subs. And yes, 1099 them.

 

[tkb]

Make sure they give you an insurance certificate and a W-9 if they are incorporated.
If they can't give you a W-9 then you will have to 1099 them.

 

[satcom]

I have a job that involves digging. I've never subbed out work before. How do I do this legally. Do they have to be a licensed company? Make a sub-contract agreement, then 10-99 them? Thank you for your help.

Hire a fully insured landscape or dig contractor that is in the business they will give you an invoice, that is all you need for tax purposes, and their insurance certificate. I would never get involved with 1099 contractors, they can leave you open to all kinds of liability with everyone.

 

[laketime]

Everyone is a 1099 contractor unless they are incorporated.

 

[CopperTone]

be sure to get their insurance including workers comp before they do any work and certainly before you pay them. You will be responsible for their workers comp if they don't have it and could be responsible for any liability if they don't have that either.

if they are incorporated - yes you do not have to 1099 them. - If you don't know and are starting to do this kind of work - you should find a good accountant now - bounce things like this off them.