I need advice. My husband started his HVAC,handyman and plumbing business
on April 1 2012. When we registered with DOPR we put him as a president of LLC
and then we used his friend master plumber for the license, so his friend is registered as a member of LLC, but he doesn't work or do anything for our LLC, just his license listed so we could be licensed in plumbing.
Now this guy been very unhappy with the current company he's working for, so he decided to leave and take all his clients with him and do it on his own but the checks will be written to our company (they will open a separate bank account) and he will be paying his taxes . They were talking about doing 1099 for taxes. So basically he doesn't have money to start his own business now, but he has clients and they want to pay to a legit company.
I know very little about taxes and all this, so it concerns and scares me to do it, but my husband already agreed to this, so we need to find a legit way to do it. I would like a contract
with him (his a very nice guy,we trust him), but its business and it has to be done the right way, so that's the question - what is the right way to do it?? Do we need to change all our paper work because we adding him? Is he going to be an independent contractor ? And if the money will come to our company we will be the ones responsible for taxes, all legal maters if somebody will sue ..then there is insurance do we add him to our liability insurance???
I hope it's not too confusing to understand what exactly I'm trying say....Please advise!!!