I am developing a Full Service Event Design Company in which it is necessary for me to collaborate with a caterer,florist,event planner etc. to offer full service event packages. The customers would pay my company , I would in return pay for the services of the other professionals. I would also prefer that they brand their services as a featured associate of my company and only promote my company, although they would be free to build their own services clientele. To me this seems as a Independant Contractor/Collaboration of services( kind of like Avon Representitive) but their are a few grey areas. What is everyone elses opion on the classifications I should pursue for my business?
Thanks for the information about lowering the worker compensation rates. I will have to research it more. With my business I have to carry so much insurance on my employees to get a job from a home builder that it eats away at most of my profit. thanks for the tips.
dyuane
Message Edited by NicoleD on 09-09-2009 01:03 PM
I would say in this case they would be independent contractors. I know a few people who do event planning and event production, they try to hire as many independents and interns/volunteers as possible. Having an independent contractor is MUCH cheaper than everything that goes along with hiring an employee.
Your business plan and the the use of other caterers, florist and event planners -- definitely sounds like they would be independent contractors and not employees.
You would need to have a pretty big event design company to justify hiring employee florist, etc .. even part time.
Tax and IRS wise it sounds like independent contractor would fit as well.
Network and Server Consulting
There are a number of legal issues that determine an 'employee' status, including how much authority you have over them, and how many others they work for as well. It certainly sounds like they will be using their own creative abilities, and will have other clients, so they could safely be considered contractors. Do be sure to have a brief contractor agreement drawn up specifying the services to be performed, the compensation, and the fact that they are not employees.
MaryAnnBusiness Plan MasterThe Business Plan for a Tough Economy
Independant contractors from my experience work the best. Mainly you do not have to file most government tax stuff, because your contractors file the claims by themselves, also with indepedent contractors you do not have to worry about medicare, or mediaid, health and insurance benefits, this way with the money you save, you can offer more competitive wages.
Like others have said they are more than likely considered sub contractors. You are not directly engaged in the oversight of the employees only in directing per a contract what is to be done and how. I wouldn't worry about it.
I also have a concern with this subject. I recently started a small cleaning business. We have commercial and residential accounts. I don't have anyone working for me full time yet, just a few friends and family helping me out. But I would like to continue to grow, and need to begin a more defined structure. I'm wondering if I can have my help, since no one is full time, set up as independent contractors who will write off mileage, etc, and pay their own taxes. They would be paid per job instead of per hour. Any thoughts or advice on this?
Based on the conversation in this thread, we recently posted a new blog article on the benefits/consequences of hiring employees vs. independent Contractors.
hardwood | Creator | 9/6/2009 - 9:08 am
thesayregroup | Creator | 5/22/2009 - 10:42 am
cssi | Window Shopper | 5/22/2009 - 6:36 pm
FedBizAdvice | Performer | 6/2/2009 - 8:46 pm
BusPlanMaster | Window Shopper | 5/20/2009 - 7:52 pm
GoodFTA | Contributor | 5/26/2009 - 1:47 am
CutCompCosts | Contributor | 5/29/2009 - 8:50 pm
Roberts | Window Shopper | 5/31/2009 - 8:37 am
shannonk4 | Window Shopper | 8/18/2009 - 10:49 am
NicoleD | Former Moderator | 9/9/2009 - 1:07 pm
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