Advice for small part-time business - Electrician Talk - Professional Electrical Contractors Forum
CLICK HERE AND JOIN OUR COMMUNITY TODAY, IT'S FREE!
Go Back   Electrician Talk - Professional Electrical Contractors Forum > Business > Business, Marketing, and Sales


Like Tree1Likes
  • 1 Post By nrp3
Reply
 
Thread Tools Display Modes
Old 03-29-2019, 10:48 AM   #1
Junior Member
 
3Rivers's Avatar
 
Join Date: Feb 2019
Location: North Carolina
Posts: 9
Default Advice for small part-time business

I am looking for advice for how to handle a small part time side gig. And yes, I am licensed here in NC. But I am full-time employed in an Electrical Maintenance department and just starting to venture out on the side.

I have one helper whose primary concern is hours toward his own License. And I need advice on how to pay him, how to handle taxes for him, etc. My original plan was to 1099 him, but another EC told me that was a bad idea; that it gives the appearance of subbing out work to an unlicensed contractor.

I would appreciate any advice on this topic, as well as any other pointers on handling a side gig. Especially from anyone in North Carolina that may have some state specific insight.
3Rivers is offline   Reply With Quote
Join Contractor Talk

Join the #1 Electrician Forum Today - It's Totally Free!

ElectricianTalk.com - Are you a Professional Electrical Contractor? If so we invite you to join our community and see what it has to offer. Our site is specifically designed for you and it's the leading place for electricians to meet online. No homeowners asking DIY questions. Just fellow tradesmen who enjoy talking about their business, their trade, and anything else that comes up. No matter what your specialty is you'll find that ElectricianTalk.com is a great community to join. Best of all it's totally free!

Join ElectricianTalk.com - Click Here JOIN FOR FREE


Warning: The topics covered on this site include activities in which there exists the potential for serious injury or death. ElectricianTalk.com DOES NOT guarantee the accuracy or completeness of any information contained on this site. Always use proper safety precaution and reference reliable outside sources before attempting any construction or remodeling task!

Sponsored Links
Advertisement
 
Old 03-29-2019, 11:32 AM   #2
Moderator
 
John Valdes's Avatar
 
Join Date: May 2007
Location: South Carolina
Posts: 15,572
Rewards Points: 2,754
Default

Welcome to the forum 3Rivers.
There are plenty answers here for you. One of our moderators is NC licensed contractor.
John Valdes is offline   Reply With Quote
Old 03-29-2019, 07:19 PM   #3
Russian Bot
 
Helmut's Avatar
 
Join Date: May 2014
Location: THE United States Of America
Posts: 3,437
Rewards Points: 3,755
Default

Quote:
Originally Posted by 3Rivers View Post

I have one helper whose primary concern is hours toward his own License. And I need advice on how to pay him, how to handle taxes for him, etc. My original plan was to 1099 him, but another EC told me that was a bad idea; that it gives the appearance of subbing out work to an unlicensed contractor.
t.
Uninsured also.
__________________
Alright, Alright, Alright... I'll tell you what to do. Go that way, reeeeeeeeeally fast. If something gets in your way......turn.
Helmut is offline   Reply With Quote
Sponsored Links
Advertisement
 
Old 03-29-2019, 07:33 PM   #4
Can't Remember
 
Join Date: Jan 2009
Location: New Hampshire
Posts: 8,970
Rewards Points: 864
Default

I think if you want to be safe, you’ll need to incorporate, get liability insurance, and get workmans comp for your helper. As well as deal with withholding taxes from his pay etc.
John Valdes likes this.
nrp3 is offline   Reply With Quote
Old 03-29-2019, 11:06 PM   #5
86 45 20
 
Southeast Power's Avatar
 
Join Date: Jan 2009
Location: Florida
Posts: 17,604
Rewards Points: 7,878
Default

Quote:
Originally Posted by 3Rivers View Post
I am looking for advice for how to handle a small part time side gig. And yes, I am licensed here in NC. But I am full-time employed in an Electrical Maintenance department and just starting to venture out on the side.

I have one helper whose primary concern is hours toward his own License. And I need advice on how to pay him, how to handle taxes for him, etc. My original plan was to 1099 him, but another EC told me that was a bad idea; that it gives the appearance of subbing out work to an unlicensed contractor.

I would appreciate any advice on this topic, as well as any other pointers on handling a side gig. Especially from anyone in North Carolina that may have some state specific insight.
The best thing you can do is hire him. Also, use an employee leasing company if you can in NC. It will insulate you from tax problems and audits.
Do not under any circumstance they to 1099 someone in the construction business in a state with license laws. Forget 1099s. Never mention it again. The only 1099 we issue is to our attorney. They are some kind of special.
Southeast Power is offline   Reply With Quote
Old 03-30-2019, 05:20 AM   #6
Hackenschmidt
 
splatz's Avatar
 
Join Date: May 2015
Location: Parts Unknown
Posts: 8,164
Rewards Points: 3,722
Default

I will assume you have everything in order with respect to state and local licensing requirements. From a business perspective, like most things, review your arrangement with your accountant, insurance agent, and lawyer, in that order, to make sure it passes muster.

Go to the accountant, ask how you can pay the guy. Check out

https://www.irs.gov/newsroom/underst...or-designation

from that document:

Quote:
The general rule is that an individual is an independent contractor if the payer has the right to control or direct only the result of the work, not what will be done and how it will be done.
That might apply to a someone you pay to dig ditches, patch and paint drywall, and clean up after you, but not an apprentice - no way. So I am sure your accountant will tell you you'll have to get payroll squared away.

Go to your insurance agent, make sure your policies are in order for the helper, in particular workman's comp. Workman's comp requirements vary by state but I think they are uniformly merciless if you screw up.

If you really run a tight ship you'll get a human resources company to set up some minimal policy manual and etc. to CYA. But realistically a lot of companies don't do this for a long time, usually not until the first time they get stung in a dispute or lawsuit with an employee. But like insurance the time to get it is before you need it.

If possible run it all by the lawyer after the fact.
__________________
Everything Should Be Made as Simple as Possible, But Not Simpler
splatz is offline   Reply With Quote
Old 03-30-2019, 06:04 AM   #7
86 45 20
 
Southeast Power's Avatar
 
Join Date: Jan 2009
Location: Florida
Posts: 17,604
Rewards Points: 7,878
Default

All you need is to have one 1099 person say that they thought they were an employee and the poop show to defend yourself will hit the fan.
You need to know, in Florida, that they have Workmans comp coverage or a current, proper exemption. We can look this up on line in Florida.
If they do not have this, we could end up paying for the coverage retroactively.
If they get cut, burned or claim they fell, you will pay for all of it unless they have coverage or an exemption.
Taxes, withholding taxes, 1/2 of the Social security contribution.
Just saying.
You need to have a deep hole dug and a plan to dump a body in it before someone finds out. Or to jump into it after you are found out.
Southeast Power is offline   Reply With Quote
Old 03-30-2019, 03:30 PM   #8
Senior Member
 
Join Date: Mar 2007
Location: Kamloops BC
Posts: 1,894
Rewards Points: 2,956
Default

Have a good book keeper that does the forms for submitting their taxes etc I dont like book keeping hence I sub it out
electricguy is offline   Reply With Quote
Old 03-30-2019, 05:32 PM   #9
Senior Member
 
Join Date: Nov 2012
Location: Philly/NJ
Posts: 539
Rewards Points: 846
Default

if he works for you most of the time your gonna have to put him on payroll....dont **** with payroll taxes like Southeast Power said they go back retroactively if you get tagged, you can get stuck for 50-100K in back payroll taxes, interest and penalties Due Immediately. The IRS division that handles employer withholding don't play. Payroll taxes are other peoples money and they are not sympathetic.

You can use a payroll service they can either pay direct from your account or they will tell you what to send.
Tonedeaf is online now   Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Advice for electric vs hvac business or both ZBat910 Business, Marketing, and Sales 33 10-14-2018 12:25 PM
Looking for Advice on Start Up ThunderHorse Business, Marketing, and Sales 17 10-05-2016 03:12 PM
Stresses of growing a business Hippie Business, Marketing, and Sales 30 02-29-2016 11:33 PM
Have You Changed Your Business Structure? Cricket Business, Marketing, and Sales 2 01-14-2016 07:31 PM


All times are GMT -4. The time now is 11:02 AM.


Powered by vBulletin® Version 3.8.8
Copyright ©2000 - 2019, vBulletin Solutions, Inc.
Search Engine Optimization by vBSEO 3.6.1
vBulletin Security provided by vBSecurity v2.2.2 (Pro) - vBulletin Mods & Addons Copyright © 2019 DragonByte Technologies Ltd.
User Alert System provided by Advanced User Tagging (Pro) - vBulletin Mods & Addons Copyright © 2019 DragonByte Technologies Ltd.
Our Pro Sites Network
ContractorTalk.com | DrywallTalk.com | HVACSite.com | PaintTalk.com | PlumbingZone.com | RoofingTalk.com