Legal Question in Business Law in Illinois

Anyone. I would caution you to look very carefully at the IRS guidelines regarding independent contractors versus employees. It can be very expensive for you if you misclassify them.

You would have to hire an existing company that wants to expand but can't on its own, and IT has the payroll system with benefits in place....and you have the wherewithall to make it happen. Otherwise several "kinds" of law, not the least of which is in fact tax law, will most likely characterize or recharacterize people you'd like to squeeze into the box of independent contractor as employees, and at that point you'll be liable for all the payroll taxes, workman's comp and unemployment insurance premiums you thought you were skipping on...... And if you have an employee who is injured on the job you have other problems. So where are you going with this? So if you do "interior" cleans and need some company to do exteriors like storefronts and/or hi-rise windows....you may be able to structure something like that. But it is not as simple as saying "hey you, poof, you're a sub not an employee."

The response given is not intended to create, nor does it create an ongoing duty to respond to questions. The response does not form an attorney-client relationship, nor is it intended to be anything other than the educated opinion of the author. It should not be relied upon as legal advice. The response given is based upon the limited facts provided by the person asking the question. To the extent additional or different facts exist, the response might possibly change. Attorney is currently licensed to practice law actively only in the State of Illinois, inactively in Florida. Responses are based solely on Illinois law unless stated otherwise.

As a franchise attorney I can tell you this area is fraught with legal risk. The IRS and state tax authorities are wise to the ploys of firms that try to hire "independent contractors" to skirt their employment tax obligations. When (not if) you're audited, they will say your independent contractors are really employees, and assess back taxes, penalties and interest. This is not a position you want to get yourself into. You need to bite the bullet and do it right to begin with. Consult with a good business or franchise attorney in your area for specific advice.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Attorney

Franchise Foundations APC

This is a dangerous situation as has been previously mentioned. Depending on the job duties and where this is taking place, your workers may be considered either employees or independent contractors. Contact a qualified insurance agent immediately as you definitely have your personal assets at risk.