Do I have to actually hire them?

[Will Dennis]

Hi guys! Hopefully simple question. If I have a couple friends help me cold call for deals, do I have to have a business entity and officially hire them? 

[Nick Rutkowski]

Originally posted by @Will Dennis:

Hi guys! Hopefully simple question. If I have a couple friends help me cold call for deals, do I have to have a business entity and officially hire them? 

I'm not a lawyer or an accountant. How many hours are these guys putting in for you and how much are you paying them? 

[Will Dennis]

Originally posted by @Nick Rutkowski:

Originally posted by @Will Dennis:

Hi guys! Hopefully simple question. If I have a couple friends help me cold call for deals, do I have to have a business entity and officially hire them? 

I'm not a lawyer or an accountant. How many hours are these guys putting in for you and how much are you paying them? 

Hi Nick, I'm not paying them anything yet because I wanted to figure this out first. Was planning to pay them either commission, or per call plus commission. It seems like such a simple question but I honestly don't know the answer.

[Sean Morrison]

There's no requirement that you have a business entity, but that could help with liability if a problem arises. Make sure they qualify as contractors, not employees or you'll have all sorts of issues. If you pay them more than $600 this year, you'll need to get a W9 from them so you can file 1099's next year. And if you're paying by commission, you should probably get a contract outlining how they're paid.