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Hiring additional handymen question.

HAESSHAESS subscriber Posts: 2
Hello, I have been running my business for roughly 2 years in Utah and I am considering hiring another person that I trust to do the work. I have a few questions regarding how I should go about employing him. My DoPL office does not want to help me with any specifics, which is dissapointing. They almost want to not give you the appropriate information in hopes to catch you doing something wrong. Google searches regarding this issue just results in how to hire an effective contractor or handyman. I very much appreciate all of the help I am able to get!

1) I currently write off all of my business miles, which amount to a tremendous amount of deductions, as well as tools that I purchase. I would like my employee to also be able to write off the same types of deductions.

2) Considering the above, how would he/ I report to the IRS? Should it be a 1099 sub contractor, 1040 self employed or W2? I would like to not be responsible for his taxes, honestly. I assume that route will allow them for more deductions and control, correct?

3) How would the licensing work? I am currently licensed through the city and have general liability insurance. Would he apply for his own Handyman license and use my general liability, or get his own for both? Which is the best option.

4) Are there any particular information regarding paying the employee?

5) I am also thinking about replacing windows and doors as I co-owned an exterior design company for 7 years. I managed the sales and canvassing crew while my partner handled the vendor, hiring, bills and payroll. We specialized in siding, windows, doors and roofing within a 6 state region and shut things down in late 2009 after the market crashed. This particular employee had worked as our primary installer for that time, as well as two other companies exterior design companies that we also worked with him at for several years. He has been installing windows and doors for over 30 years and is fantastic with the customers and has superb workmanship. Therefor, I would like to utilize those skills and expand some of my offerings. Would there be any licensing requirements for Utah other than an exemption for larger work?

6) Anything else I may have missed or thought of.
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