Originally Posted by [b
Quote[/b] (musician/lawnman @ April 16 2008,10:41)]Thanks for reading the post & I apologize if this has been on here before (I'm sure it is, I just can't find it). *
* I think I've reached the point where I either work my can off as a one man show & stay this big and stop growing, *or bring on my first helper & continue to expand my client list. *
*With that said, I need to set up workers comp (I am exempt) for the prospective new employee, & either buy some version of quickbooks that could help me with payroll or hire a payroll service. * It would just be the one employee so maybe we'd be better served to handle the accounting in house...?
Anyone that's been in my shoes before wanna shed some light on this crossroads and guide me towards the smarter decision?
There are a few things I would like to address here.
1. You should carry work comp on yourself. Here is why, if you get hurt, who is going to take care of your clients? If the injury is bad enough (God forbid) who is going to take care of you and your med bills? Think about it, prepare for the worst always.
2. Incorporate your business, most states will let you do it yourself, (here in KY it cost $50 filing fee and done) do not use LLC, use S-corp or C-corp put yourself on payroll. Here is why, not knowing what part of the country you're from if you don't have a lot of snow to keep you busy or accounts to carry you through the off growing season then you can apply for unemployment and not have such a hard time during these months of down time.
3. My bank (PNC) and most big banks do offers payroll services at a very good rate, less than any bookkeeper I could find. This service takes care of everything, all quarterly filing and payments, after you set up the account all you do is input the hours for the pay period and and print checks. Minor detail; make sure all the money required is left there and not touched, the IRS is VERY strict on playing with the with-holding money. So open seperate accounts, Operating and Payroll.
PS LLC and Corp C or S is all different, with LLC you cant be an employee where as the other 2 you can be. Hint LLC only protects you and your personal assets to a point from business liabilities.
NOTE: This is not legal advice, it is only business advice of my current business practices.