Greg, the sad answer is no! You never want to be in an IRS audit. Time is money and you loose any time you are audited due to lost time that you could have been productive... Let alone the cost of tax lawyers & penalties when you loose. 1099's raise red flags to the IRS because so many people try to circumvent the situation illegally. You may get by in the short term but you are in business for the long term. Eventually it will catch up with you... Can your business survive an unnecessary audit?
Legally you have to have workmans comp for yourself and your wife if she is helping you. If your serious about making a living doing this just do it by the book and then you don't have to worry about anything.
I just lost my "help/psuedo partner" and am flying solo....loving it!!!!!!!! I've got guys I can call when needed, but usually don't need more than one other warm body on a job site.
Roofs make up about 30% of my business income. 15% commercial, the rest is house washing.
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Ray Burke
Spray Wash Exterior Cleaning
850.528.3226
visit our website Soft Washing and Pressure Washing
I have a couple guys and some fam members I'll use for the big stuff. I agree with just about all the points you guys made. Employees are the highest expense most of the time. At the very least, you should carry workman's comp.
Most of the time, help is not needed, but it looks better to the customer and a groundsman is ALWAYS a good idea to help things go smooth or dial 911 should you fall off a roof
Sometimes I'll grab the ol' ball n' chain just for that if nothing else.
-- Edited by PowerClean on Sunday 9th of May 2010 08:38:54 AM
I owned a business for a few years . When I worked by myself, I made a decent living. I had to hire other people as the business grew. The problem was they I had to do 2 to 3 times the volume to make the same wage as I did alone. I went back to myself when things slowed up. Less headaches
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Green Apple Roof Cleaning Co LLC
412 - 389 - 4662
Soft wash roof cleaning
preferred method of the roof manufacturers association
I agree with you that having no employees is easier. No 941 monthly payments to IRS, no quarterly 941 filings, no yearly 940 IRS filings , no paychecks, etc.
-- Edited by Roof Cleaning Katy Texas (281) 392-2304 on Sunday 9th of May 2010 10:29:23 PM
How do you guys do roofs with no ground person? I don't think I would think about doing some of the homes we do without a grounds person. Some of the landscaping around the houses we do is very expensive. Just not worth not having two people on each job.
wow alot of info here, We at Elite don not carry workcomp cause we are not required to by state law since it is owned and operated by my brother and I. BUT... if a customer requires us to have workcomp, we work under our sister company that has work comp but still get paid and 1099nd under Elite... Their is no problems doing that.. Work comp will keep a company broke at $15000 a year...
all I can say is do your home work on the employee thingy, dont go by hear say!!
KID
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Elite Roof Cleaners Roof Cleaning Missouri & Kansas City
Just an idea, If you were to hire a dependable person such as a retired man or women that you know or who is related to you and had them register as a company calling it a name such as "The Water Man " or what ever and payed their start up fees . You could pay them may be 15.00 per hour for example, and they could water there butt off all day for you. They would be happy because they would be retired and probably would like the extra money, and you would be happy because you would not have to pay workmans comp. In Pa.I dont think you can buy workmans comp if you only have 1 employee.
Could this work?
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Green Apple Roof Cleaning Co LLC
412 - 389 - 4662
Soft wash roof cleaning
preferred method of the roof manufacturers association