• Home
  • About
  • Our Listings
  • Search Homes
  • Mortgage Calculator
  • Blog

ReferralRealty.US

Serving Raleigh, Durham, Chapel Hill & The Triangle

ReferralRealty.US – North Carolina Homes

Browse All Homes for Sale in Raleigh and Surrounding Areas

Hiring an employee/partnership?: 1099, W2, pay cash?

June 26, 2012 by PeterGreijn

Uncle Mo,

It sounds to me like you have a lot to think about in regards to the business.

1. Always avoid others having ownership in your business. Your money = your business unless they are providing VERY substantial services. Although it sounds to be as though they basically just stock the shelves. (sounds kind of like the Coca-cola guy who fills the machines). Hire the business partner as a commissioned employee or as an outside commissioned sales person.

2. NEVER pay cash. You can get yourself into serious trouble this way. I’d go the 1099 route since they have incentives to acquire accounts and will incur mileage.

Although if you are providing the transportation from location to location then you may want to consider them an employee.

3. If they are a partner this will depend upon the entity; however, a partner never receives a 1099. They will receive a w-2 if it is a C or S corp(also issue them a k-1). If it is a partnership they will receive only a k-1.

4. See above.

5. I suggest having your accountant take care of everything.

6. The business will be whatever you want it to be. Get your attorney and accountant together to figure everything out.

Exit strategy, sell it off to someone or sell it to one of your salesmen.

-Steven the Tax Guy

Your guide to IRS laws, rules and regulations.
BiggerPockets Forums

Filed Under: Investing Tagged With: 1099, Cash, employee/partnership, Hiring

Be Social – Follow Us

  • facebook
  • twitter
  • instagram
Request a FREE Foreclosure List
Foreclosure Subscription
Click on this Link or Photo to SUBSCRIBE

ReferralRealty.US LLC

For more information Phone:919-422-9677  Or, click here to: E-mail Peter. 

Copyright © 2021 · AgentPress Pro on Genesis Framework · WordPress · Log in

The data relating to real estate for sale on this web site comes in part from the Internet Data Exchange™ Program of the Triangle MLS, Inc. of Cary. Real estate listings held by brokerage firms other than ReferralRealty.US, LLC are marked with the Internet Data Exchange™ logo or the Internet Data Exchange™ thumbnail logo (the TMLS logo) and detailed information about them includes the name of the listing firms. Listing information is deemed reliable but not guaranteed. This web site is monitored for signs of third party scraping and any use of search facilities of data on the site, other than by potential buyers and sellers, is prohibited.