Contractor or Good Handyman tax liability

[Will Rodgers]

HI All,

Alright, I have read J Scott's book and am aware that you want to hire someone who is licensed and insured etc to do my labor for a flip... But I know someone who is really good at rehabbing but is not licensed or insured. Im thinking about hiring him for, painting, tiling, flooring and basic electrical install cabinets, etc. Then hiring a licensed guy for roof, plumbing (If necessary), and skilled electric. What are your thoughts? 

Furthermore, what are your thoughts as it relates to paying payroll taxes on the handyman (any any other tax liability that I may be subjected to)? There seems to be confusing info on this...Would I have to pay more in taxes by hiring a handyman?

 Is it really a big no no to hire this handyman as it relates to taxes?

Do you suggest paying the extra cost for the GC and getting them to sign the indepedent Contractor Agreement or paying handyman (He can pretty much act as a GC with his experience level)?

Any help/ thoughts would be greatly appreciated!

[William Robison]

This is more of a legal/tax question.  However, I understand your position.  We are taking our handymen that are good at their job, getting them insured and compliant so that we can better utilize their resources and stay compliant.  Your property insurance likely will not cover you if something happens to him or the property if he is not insured, etc.