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GROWING PAINS! Worker's comp or Partnerships anyone?

By Michele Kurelich

Home Stager with Triangle Home Staging & Design/Lasting Impressions

May 16, 2007 02:09 PM

I currently do not have worker's comp and I operate as a Sole proprietorship. I have someone that has been assisting me with staging and she has expressed an interest in helping me on whatever jobs I need her on. Work is picking up and I really do need the help, but what to do about Worker's comp? She has even found jobs for us to stage and she is a great asset to have, but do I make her a small partner (not sure how or what that means) or at what point do I make her an employee. This is very confusing to me and I would appreciate any advice.

I am new to AR and find it comforting to be here, that I am not alone. Any help in easing the GROWING PAINS would be great and THANKS!

Michele

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Anthea Click

Fresh Perspectives - www.InsideNashvilleHomes.com - Franklin, TN

Nashville Home Stager - Selling Nashville, TN homes quickly!

Michele,

Here's an idea: Have you considered making your helper an independant contractor? She can be paid on a per job basis and a commission on all jobs she brings in and then you can avoid all the taxes and headaches of being an employer.

May 17, 2007 04:38 AM

Erica Howard

Take 2 Home Staging - Centerville, OH

Independant contractor is definately the way to go!!!! No workers comp or employer taxes. She takes care of all the taxes you just give her a 1099 at the end of the year.
Good luck!

May 17, 2007 10:14 AM

Reece Mack

Simplicity Home Design, Thousand Oaks, CA - Thousand Oaks, CA

Owner

I too agree and would choose to make her an independent contractor vs. an actual employee. Then she can still work for you but you don't have to cover all the employer responsibilities.

Reece

May 19, 2007 04:11 AM

Cindy Richter

Interior Motiv Home Staging - Flower Mound, TX

IRIS Dallas, TX Home Stager

Partnerships are hard enough when your best freinds. I agree with the others.

May 19, 2007 06:18 AM

Kathleen Lordbock

Keller Williams Realty Professionals - Baxter, MN

Keller Williams Realty Professionals

Independent contractors have their own tools. set their own hours and work independently on other jobs. Make sure you get the legal description and that she does fit it or you will still be liable if she gets hurt and so will the home owners.

May 19, 2007 06:36 AM

Karen Reynolds

Champagne Staging, LLC - Wake Forest, NC

Hi Michele - or should I say Madam Treasurer? :)

I'd make your assistant an independent contractor and 1099 her at the end of the year. Since she finds jobs for you, perhaps you can give her some kind of commission on the job?

I'd avoid a partnership unless you are willing to let her have a say in matters.

It was great to see you again last week at the IAHSP meeting -- thanks for volunteering for the Board :)

May 20, 2007 01:29 PM

Kelly Townsend

Coldwell Banker - Santa Rosa, CA

CDPE, Realtor

Hi Michele -

I work with another stager that owns her own business. She has her own insurance so I feel it is a good fit. I once had a client almost not hire me because I didn't carry workers comp. I explained I had no employees and she made me and the other stager fax her copies of our liability insurance. She was in the process of being sued from a worker who fell off a ladder at one of her properties.

That is the only thing about hiring someone as an independent contractor. Technically, they should carry their own liability insurance, or so I've been told.

Feb 22, 2008 06:58 AM

GROWING PAINS! Worker's comp or Partnerships anyone?

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Michele Kurelich

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