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Rakhi Vasavada
Rakhi Vasavada, Financial and Legal Consultant
Category: Finance
Satisfied Customers: 2574
Experience:  Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
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Greetings! I would like to form an LLC as real estate

Customer Question

Greetings! I would like to form an LLC as real estate appraisal company. I only paid for myself as W2. However, I would like to hire 2 employees and I only want to pay 1099. Is there any form to protect me for them to come back later for unemployment benefit? Please advise. Thank you!
Submitted: 5 months ago.
Category: Finance
Expert:  emc011075 replied 5 months ago.

Hi. My name is ***** ***** I will be happy to help you.

Unless you elect to be treated as corporation or scorp, you do not pay yourself through payroll or issue W2. If your workers are employees (w2) or independent contractors (1099) depends on several factors:

Here is difference: http://employment.findlaw.com/hiring-process/being-an-independent-contractor-vs-employee.html

If you misclasify your employees as contractors you may get in trouble with IRS and state agencies as well. The only way to protect yourself is to treat them as contractors.

Expert:  emc011075 replied 5 months ago.

I see you read my respond. Do you have any questions? Is there anything else I can help you with today?