Loading...
Answers
MenuIf i an running a labor service company and i want to do employees on 1099. Work comp still cover?
If i an running a labor service company and i want to do 1099 for employees. If i have a work comp policy in place are they still covered or do they need to be on a w4 / i9. California based
Answers
Likely you best rethink this.
You've already used the work "employees", so you've already proved your workers aren't 1099 contractors.
The rules a person must meet to be a 1099 contractor.
1) They have no supervision.
2) They have no set hours.
For example, I have a 1099 contractor who runs one of my businesses.
His direction is "get all the orders out as fast as you can."
He has no set hours.
He has no set workplace. Sometimes he works from his home, while he travels, sometimes in the business office.
This is a true contractor.
If you meet these criteria you're good.
If not, you best search for what happened to Microsoft when they paid a bunch of employees on 1099 for years.
When you read this suit, you'll be inspired to avoid their mistake.
All California employers must provide workers’ compensation benefits to their employees under California Labor Code Section 3700. If a business employs one or more employees, then it must satisfy the requirement of the law.
Related Questions
-
How to collaborate with insurance companies (B2B)?
Start by getting a doctor to 'sponsor' you - to recommend it to their patients. Give them a few for free so their patients can try it out - which will get the physician sold on it. Meanwhile, also start reaching out to the right people in the appropriate insurance companies through LinkedIn and via email. You may also want to connect with people who have been in Insurance - like Jeff, Daniel, Craig, or Liran here: https://clarity.fm/search/insurance When you reach out to executives in insurance, keep it personal, and tell them you are looking for their advice. I have a 12 step system to walk you through the sales process once you get a call lined up, but to get you started you could read The Little Red Book of Selling (quick read) or The New Strategic Selling (dense but invaluable). SNAP Selling is good too. Remember, this is all about relationships, so start with personal. InMails recently changed to make it easy for you to keep costs down for outreach. As long as you get a high response rate, your cost of $10 per unanswered InMail will go a long way. If you can't use InMails, try sending samples with testimonials and call them to discuss the day after you expect them to receive it. Use FedEx sign on delivery to increase the chance it gets to them instead of a mail room or secretary.RD
-
What are the tax consequences for founders if the seed round investors take common stock instead of preferred?
There shouldn't be any tax consequences for the founders if you've made 83b elections--the election meant you paid tax already on the full value of the stock at the time of the election (presumably zero) even though it was subject to future forfeiture. If you sell newly-issued stock there should be no tax impact. If you sell your own common stock, you'd pay tax on the gain, but I doubt that is what you mean here. Of course, you should not take the free advice dispensed on Clarity and consult your own tax preparer--this is not tax advice.BS
-
How are SaaS companies taxed?
Same as any other entity (or person). Entity pays taxes in it's domicile jurisdiction. Best you talk with a tax preparer in your home country to ensure you have all the details. And... If you're a US citizen + your SAAS company is generating massive cash, likely best to organize your entity in a low tax jurisdiction, like Bermuda which is home to Google, Intel, Verizon, etc. And... best wait till Trump's new tax bill passes. If he has his way, corporate taxes may drop to a point low enough to keep your business in the US.DF
-
I'm a Canadian selling ecommerce products on Amazon (US only). Need info on cross border tax clarification & if it's time to incorporate (in US or CA)
Regarding US taxation of internet sales. Since you are a foreign entity or person (in regard to the US), and there is an income tax treaty between Canada and the US, you will not be liable for US federal income tax on internet sales unless you have a “permanent establishment” in the US with which the internet sales income is effectively connected. So as long as you do not have a warehouse, physical store, sales office, etc... in the US you don't have to file US returns or remit tax to the US. Amazon should be charging to the customer and withholding any sales tax due to a state in which your products are sold. If you sell through other merchants or directly you may have to deal with this yourself. Regarding incorporation Incorporation is almost always a good idea from a liability standpoint as it prevents a judgement for damages from taking all your property and limits the collection to what is owned by the business, With the facts you have given I would suggest incorporating in Canada unless you have a business reason to establish a physical presence in the US. This will eliminate US taxes and related compliance costs. Once you establish a US presence you will need to begin filing returns in the US even if you are running a net operating loss. If there is no benefit to having a physical presence in the US then the related compliance costs and tax would be an unnecessary expense. Feel free to setup a phone call if you would like to chat for a bit regarding the matter. ThanksDM
-
If I get a virtual address for my company and I work from home; will I still be eligible for tax credit on my home office?
yes. As long as your main place of work is your home/office.JF
the startups.com platform
Copyright © 2025 Startups.com. All rights reserved.