# Hiring as a Sole Proprietor



## dalessandro12 (May 27, 2008)

I recently created a company as a sole proprietor and was wondering, if I wanted to have someone in the family help me out with the business, could I hire them as an independent contractor? What would be the regulations with that? 

I do have an EIN number but want to make sure that it would be mutually beneficial for my company and my family member. 

Any help is appreciated. 

Daniel


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## jiarby (Feb 8, 2007)

We hire my wife's daughter a few times a year on a 1099 basis, but not a regular gig. For an every day person you should make them an employee. There are alot of tax issues you need to consider, so it's best to talk to an accountant before deciding.


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## peteVA (Nov 11, 2007)

In a word - NO!

Not if you are going to set the hours they work, provide what they need to do the job, etc.

A private contractor is someone you pay by the job, who can work at their own pace, as long as they meet your deadline, who requires little or no supervision and much more.

Working a regular job cannot be classed as a IC.


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## dalessandro12 (May 27, 2008)

I wouldn't be setting any hours or having her clock in or out and she wouldn't be an everyday employee and would work at her pace out of her home. I was thinking of 1099'ing her with a pre-agreed sales of X amount of products for a given rate.


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## peteVA (Nov 11, 2007)

That is a different situation. And it may have tax or licensing consequences for her, so you need to keep that in mind, as well. But, yes, you could call her an IC.
.


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## jiarby (Feb 8, 2007)

As long as she understands about paying Uncle Sam in April that scenario could be OK. She should also start a business so she can write off expenses and offset some taxable income.


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