how tolegally secure yourself /company if you hire daily workers?

Question

HI everyone, Im on my second house flip and I was thinking of hiring  daily workers ( carpenters, handymen , painters) for things that dont require permit pulling. How would I go about this with insurance (workers comp and liability ) and taxes ?  i dont want to break the bank would this way be more expensive then just hiring out a GC?  Im doing this full time and looking to do 7-10 properties a year.

Account Closed · Answer

@Mario Morales I agree with @Bruce Woodruff. If it is a very small Reno that might just require a guy or two and they’ve done work for you or someone you knew in the past then maybe 1099 them but anything more a GC is very valuable.

Bruce Woodruff · Answer

I'm probably biased as an old GC, but I don't think most people realize how much value you get with a good GC. For an extra 20% +/-, they find the subs and workers, vette them, manage them, check their work, pay them appropriately...and they have the insurance and bond so you're covered. You can get screwed in so many ways you wouldn't believe it.....

It really isn't worth it to run it yourself...esp by the time you self-insure and get Worker's Comp and all. Sure there are occasional success stories, but they are 1 in a million....just my .02

Bruce Woodruff · Answer

@Mario Morales I'll add that if you choose to work as an Owner/Builder and don't follow all the laws that a GC does.....you can/will be hit with penalties/fines/jail time. Yes jail time - for hiring an unlicensed worker (who of course told you that he was licensed and even showed you his license. These guys know every trick in the book...

I would say if you can't afford that extra 20% then you shouldn't be doing what you're doing.....unless as Account Closed said, it's a very small job, or you have some experience in the field. You have way too much exposure to screw this up....

Edwin Vela · Answer

In my personal experience hiring my own construction crew wasn't the best idea. I found myself managing personal the moment I would leave they would jerk around and not move as fast. Besides the liabilities it wasn't worth it. Get a few people that are handy and hire them for jobs but do request that they should finish on schedule and always always keep looking for better prices and quality some handyman start to increase prices over time.

Matt M. · Answer

@Mario Morales

Just hire legit contractors. Require they have GL insurance and the the property licenses. Pay a little more, get peace of mind.

Bruce Woodruff · Answer

Absolutely correct. Use a GC, but find a good one. Check license status and history, call references (although this is kind of useless, no Contr is going to give out a bad reference)

Mary M. · Answer

Just want to add that GCs can be crooks too....  so you need to find a quality GC that wont rip you off.....  (50k down this year from this very thing and doubting I will ever see my money again).......

Mario Morales · Answer

ok thanks for your inputs.

how tolegally secure yourself /company if you hire daily workers?

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