Question for the guru's, employees vs subs

[Caleb Chandler]

Hello board,

I am reaching out this morning to see if I may gather some knowledge. I am closing in on presenting my plan to some investors, and I have one aspect I am torn on (Well one I am asking about here :) ).

What are the pros and cons of hiring employees vs using sub contractors? My goal is to flip homes, and if I am long with the investment, buy and hold as a rental property till we get short with the investment. The first downfall is the employee taxes and benefits, but is there any other negatives.

My thought is to establish a construction company separate to the investment company, but right now it would be just departmentalized.

Thanks for taking the time to read this, and the advice I may receive.

Thanks,
Caleb