Starting a Rehab - Contracts, 1099, & recording payments

[Fred Mejias]

About to start first rehab. I wanted to know as an owner when I pay a individual to do work is that different than when I pay a company to do work. Should I have contracts for all jobs being performed or is it okay to have some one just do a job without a contract (i.e. demo work, etc.) When does something get 1099? And are there other thing my wife and I need to be aware of when recording payments for work done?? We are just trying to start this off right and just looking for some insight from those who have done it. Please remember we are not doing this as an LLC, just as the owners of the property. Thanks for all the input!!

[Manolo D.]

If you pay per individual less than 600, it does not call for 1099, if they go over, you give them 1099. Each individual or company needs to fill out a W9 that gets their details and SSN/EIN. End of the year you send them 1099 forms using info on W9. Since you verbally told them to do demo, and they agreed to be paid on certain amount over a certain number of days (or scope of work), they are in fact contractors. A discussion about liabilities, licensing, and other areas of concern is not something that is included in these statements and is a whole new discussion, look for those info as well. Try to get J Scotts book on Rehab. I think they sell it here or in Amazon.

This should be under Contractor or Rehab thread where people can advice, pitch in more. This thread is for actual construction diaries with pictures of the progress and success.