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can I use the LLC model to avoid having employees?

robert4seattlerobert4seattle subscriber Posts: 1
edited June 2008 in Selecting a Business
I`ve have a small service business and also had an employee or two.  I hated it and learned that it`s not worth having employees unless you have enough of them.  The amount of work and costs and regulations that you have to follow with employees just isn`t worth it for me to run a business with just a couple of employees.   I would love to have a decent amount of people working the business at some time, but would like to grow into that as the businesss expands.  So that`s just a short overview of my experiance.  But here`s the real question.  CAN I USE THE LLC MODEL TO AVOID HAVING EMPLOYEES?  So each new member is also the team member that does the work out on the field.  They would be a part of the business as a member having right to vote and guide the business but at the same time they would do the work.  From what I`ve read I think this can work but I`m just not sure.  Overall I think this model would clear up some of the headaches with having additional people as employees.  At the same time it would give the people working a sense of being part of the company instead of just "worker bees".  Any imput would be greatly appreciated.


  • KevDevKevDev subscriber Posts: 5 Member
    I`m wondering if you aren`t stretching the LLC concept past it`s breaking point here. It isn`t that what you are suggesting is wrong or illegal (as far as I know - I`m not an attorney), but I`d be concerned that you would just be trading one set of headaches for another.
    For example, let`s say you bring on two additional members, then things get tight, and you need to let one go, except you can`t because they out-vote you! To get around this, you would need a very well constructed partnership agreement, which would have to be created in cooperation with an attorney... you see where I`m going? Trading one headache for another.
    Even though having employees can be a pain, at least hiring, firing, and paying are all legally well defined.
    I`ll be interested to hear what you decide. Good luck!
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