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Joseph, Lawyer
Category: California Employment Law
Satisfied Customers: 5299
Experience:  Extensive experience representing employees and management
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Can I employee people under one company to work for several

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Can I employee people under one company to work for several small family businesses. Saving myself the need to file employement reports for several businesses and just pay and file under one, then charge the other small businesses the gross cost of their labor.

Are all businesses owned by you or certain family members?

In other words, is the ownership of the small businesses the same as the owner of all the businesses?


Also are the businesses set up as separate companies, corporations, or other entities, or are they all considered part of the same overall business?

Customer: replied 3 years ago.

My parents own one business that does custom harvest, My brother owns a small farm, my son owns a small farm, my nephew has a small harvest business and another nephew has a small trucking company. All the businesses are owned by people other than me, however I end up doing the bookkeeping for all these companies. Currently I have 5 separate workers compensation carriers and 5 separate sets of employee training, safety meetings and reporting. I was hoping it would be legal to combine all the employees under one managing company, mine, that would save a lot of work on my part. I currently have a business called English Enterprises Inc. it is a corporation that I use to operate my bookkeeping and records management under. I would like to use this company to employee all workers for all companies if it would be legal.

Hello Carrie,

No, unfortunately, since all the businesses are owned by separate entities (your parents, your brother, your son, and your two nephews) the employees would need to be hired as separate employees of each entity.

If they weren't, you would be the one liable for any employee injury, so although you do not own any of the businesses, you would be liable for any injury that any employee suffers on the job, which would be very adverse and unfair to your interests, as you would be responsible for maintaining workers' compensation insurance on all employees.

You would also be solely responsible for any wage claim that any employee would to file against the business that they work under.

Basically, it would create way more complications than it would resolve if you were to attempt to hire all the employees under your corporation (including potential tax liability and tax complications if they aren't listed by the entities that actually employ them) instead of the individual businesses owned by your family members.

I sincerely XXXXX XXXXX had better news to give you, but I hope you appreciate a direct and honest answer to your question.
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