Contractor Talk - Professional Construction and Remodeling Forum banner
1 - 5 of 5 Posts

·
Registered
Joined
·
9 Posts
Discussion Starter · #1 ·
Hi,

I am a licensed contractor (C33) who does decorative painting/finishes. I do not carry workman's comp because I have always taken on jobs I could do myself and if I needed a laborer I hired form Protrades who insures their people.

Question - I am now bidding a large decorative job and want to team up with another finisher who is also licensed and insured...how does the contract get structured in something like this?

Thanks,

Cher
 

·
Registered
Joined
·
318 Posts
Where I'm at you first have to get a license issued in the name of the joint venture. You might want to check that out where you are located. The easiest way to do what you are looking to do is to have one of you be the prime contractor and the other a sub-contractor to the prime.
 

·
Registered
Joined
·
9 Posts
Discussion Starter · #3 ·
contract structure

Thanks for your reply. I am in CA. If it is set up with the prime and sub then I assume I would have to 1099 him? If so where do I get info on how to do that?

Thanks again.

Cher
 

·
Registered
Joined
·
318 Posts
Whether or not you 1099 depends on how his company is structured. For example you do not 1099 corporations but you would 1099 a general partnership or sole proprietor. You should be able to find all the information you need on this by going to the IRS website. While your there make sure you take a look at IRS ruling 87-41: The twenty Factors. This will give you additional information as to who you can and can not 1099. Your accountant should also be able to give you information regarding 1099's.
 
1 - 5 of 5 Posts
Top