The below is an excerpt from our Foreclosure Cleaning Newsletter. Sign up for your free copy here: http://www.foreclosure-cleanup-blog.com/?p=535.
Foreclosure Clean-up Business Newsletter Excerpt:
Hi Everyone. I hope your week is going well. Can you believe fall is in the air? Will be the holidays before you know it. Should be a good fall season.
Question & Answer: As promised in the last issue, below is another Q&A — a question from a business owner about using family help in their new business. See my answer below. Enjoy your day. Until next time …
Foreclosure Cleanup, LLC
Individual Asks Question about Hiring Family to Help Out in Foreclosure Cleaning Business
Question: Cassandra, can I have family/friends help for a while until I can afford employees (I would still be paying them but I can’t afford the expenses that come with having employees right now)…. without getting in trouble? P.
Answer: Sure; as long as you don’t pay one individual more than I believe it’s $600, you don’t have to issue them a 1099 Form. Check the IRS’ website on this.** (Google “1099” if you’re not familiar with this form.)
Tip: Make sure you start out with a formal relationship on jobs using family and friends or you may not get taken seriously by your workers. It can be your brother or your best friend, but on the job, remember, you are the one in charge. Start out that way so the casual relationship does not get in the way of the work output. Remember, you will be the one facing the client when it’s time to get paid, so make sure your workers follow your rules and your checklists so the job is done to your satisfaction. (Speaking from experience, here.) Cassandra
**Note: Visit http://www.irs.gov for more information re: IRS reporting requirements. The above is not intended to be a substitute for legal and/or accounting advice.
Look for more Questions & Answers like the one above in coming issues. In the meantime, here are links to related editorials on the Jobs Blog:
- Entrepreneurs — A Perfect Start-up Business for Families: Foreclosure Cleanup & REO Trash Out Service, http://www.foreclosure-cleanup-blog.com/?p=29
- How to Effectively Work with Laborers & Subcontractors in Your Foreclosure Cleanup Business, http://www.foreclosure-cleanup-blog.com/?p=6794
- How to Grow Your Foreclosure Clean-up and REO Trash Out Business by Making It a “One-stop Shop”, http://www.foreclosure-cleanup-blog.com/?p=38
Continued success with your business.
Foreclosure Cleanup, LLC provides outsourcing, foreclosure cleanup industry tools, a wealth of FREE information, consulting and job leads to foreclosure cleanup and real estate industry contractors. Visit Foreclosure Cleanup, LLC websites: