Construction LLC 1099 employee

[Matthew Scott]

I have organized the rehab of two properties myself and plan to continue more in the future. I have also picked up a lot of side work with other property managers to keep money coming in. I decided to legitimize this money by creating an LLC. I figure this will help me keep my own rehabs organized while also showing a stream of income for the handyman work that I do. If anyone has started something similar and has any tips or questions for me I would love to talk.

My main question that I am looking to get answered right now is how to handle my 1099 employee. He is a friend of mine that has been helping me with projects for a few years now. In the past I have paid him cash but now that I am running things through an LLC I believe I need to pay him as a 1099 employee. Is this the best way to do it or should I try to get him listed as a full time employee with an hourly wage. How will this effect any type of insurance I will need for my company?

[Dennis Cosgrave]

You are better off to keep him as a 1099 employee. For those of you who are unaware a 1099 employee is an independent contractor. You essentially pay him per job, not as an hourly or weekly employee. If you hired him as an employee, there is additional paperwork to do at least every quarter and employment taxes that you as an employer have to make on his behalf. Try to keep your life simple. There is already more than enough bureaucracy to waste your time on.