Legal Question in Business Law in Ohio

You have asked several questions so I will try to go through them one by one. First, workers comp. You only have to have workers comp. coverage if you have employees. If it is just you with some independent contractors (people you would give 1099s to) you shouldn't have to worry.

If there are any permits or licenses that a tree service company would need to work, either from the state or local community, then yes you would likely need to get those permits or licenses. Even if you don't incorporate in some way, you are probably better off getting those permits or licenses to protect yourself.

As far as the "qualified contractor" issue, first be advised that I don't do tax law and so this is based on my general business knowledge and NOT tax law knowledge. For whatever reason the IRS believed that your "day job" treated your more like an employee than an independent contractor. I don't think that will have an effect on whether or not you decide to incorporate.

The child support issue is a little trickier. One of the main reason you incorporate is to protect the assets of both you and the business. If you would get sued as an individual, you don't want them to be able to touch the business' assets, and vice versa. The trick is the company will be just you. If you incorporate (whether as an LLC, corporation, or other entity) there will be some protection of the business' assets from child support. However, they can still go after any money that you make from the business (for instance, if you give yourself a salary, child support could go after that salary).

Overall though, it is usually a good idea to incorporate if you have a business. Incorporating can help separate you as an individual from your business. This is especially beneficial if someone sues your business and you want to keep them from going after your personal assets, bank accounts, house, etc.

I hope this helped to answer some of your concerns. If you have other questions or would like to discuss incorporating and which entity would be best for you, feel free to contact me.