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Multi-tradesman defender
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I kind of like this barefoot builder. He knows Treefiddy is the going rate, knows how to search, and did not ask how much.

Welcome aboard.
 

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Yup, sounds like a good guy. Best advice - never let anyone get into you for more money than you are willing to loose. Just tell them you are in the contracting business, not the financing business.

Go for it. You'll be fine. :thumbup:
 

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It would be hard to be more wrong than that.
J.F.
Maybe both my accountant and the I.R.S. representative I asked that question to 6 years ago did not know what they where talking about, but I doubt it. Maybe it was the way I asked the question. Maybe you know more about it than they do? If so, please share, I would love to not have to pay payroll taxes and fuss with withholding's and all the paperwork involved. It would make my year to find out I could legally get away with that.

If I where you and you are doing that, I would verify you are doing it legally, otherwise if you ever get caught you can be held responsible for back taxes, fines, and interest on penalties. I know a lot of guys 1099 thinking they can do so legally without ever bothering to truly verify that they can do so. In the eyes of the law ignorance is not an excuse.

You should also be aware that they are starting to crack down on improperly used 1099's. A builder I know working in my area just got to write some pretty nasty checks for 1099ing carpenters working for him.
 

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Any one can be 1099
Just spoke with my accountant and got a little clarification on this matter.

Refer to IRS Revenue Ruling 87-41 for who can be 1099ed.
Also you can fill out form SR-48 and mail it to the IRS then they will tell you how to appropriately file the person(s) in question.

"In Virginia DPOR does not issue contractors license's to individuals only to a business. Without a contractors license in VA you can not engage legally in contracting."

He went on to explain the obvious from there that no business = no license= not independent contractor.

That is why I was told they are for business entities only, the question was answered specific to my location and situation. Next time I ask a question I will remember to ask for clarification.
 

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So, help me understand- the guy can't keep you busy 40 hours a week, he pays you a ****ty wage, expects you to jump for every little project, and 1099's you, and you're worried about upsetting him by going to find other work? Does he really expect you to just stay home reading the paper and waiting for him to call?

If you're not going to be competing with him (sounds like you're not), he's got nothing to be concerned about. If he gives you a hard time and tosses you to the curb, an anonymous call to the IRS will straighten him out.
 

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Discussion Starter · #28 ·
Thanks again for all the advice everyone. These boards are a great resource and I plan on sticking around as I grow this business.

So, help me understand- the guy can't keep you busy 40 hours a week, he pays you a ****ty wage, expects you to jump for every little project, and 1099's you, and you're worried about upsetting him by going to find other work? Does he really expect you to just stay home reading the paper and waiting for him to call?

If you're not going to be competing with him (sounds like you're not), he's got nothing to be concerned about. If he gives you a hard time and tosses you to the curb, an anonymous call to the IRS will straighten him out.
That isn't quite how it is. I'm really not worried about upsetting him but would like to be able to juggle both his part time work as well as my own thing until I'm too busy to work for him as well. He doesn't expect me to just sit at home but thinks that I will only try and get little small side jobs while I wait for him to get more work for me (which is coming up fast). He keeps telling me to just 'sit tight' to which I just want to laugh and tell him the job isn't worth sitting tight for.


He has a house that the framers are finishing up and as soon as they are done he is going to need a carpenter to get in there and fix all the stuff they did wrong as well as do all the stuff they are incapable of. Not surprising he uses low ball framing crews so he has to pay someone else to fix all their shoddy work, lol. When I get that call I'd like to tell him that I'll do it but have purchased my own insurance and as a subcontractor my rates have gone up. If he says he can't pay me more I'm prepared to walk away.
 

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Interior Renovations
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253 Posts
The residential work here in NYC has been very slow over the past year or so. Especially for a brand new company with a very limited marketing budget. I finally got my GC license back in May but unfortunately I have had very few jobs since then. The advice on never burning a bridge is dead on. I have been able to pick up enough freelance work and shop work from past employers that I have kept in touch with and with that I have been able to invest a little in my new company. Everyone is pretty supportive of me and understands how rough it is out there...I would be upfront about your plans. If you are starting your own business let your boss know. If he will let you work on a freelance, as-needed basis while you get your business together-great. If not, somebody else will...

Good luck.
 
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