Work contract/agreement

owScott said:
Setting up a LLC is easy. Secretary of state website and fill out a form and pay a fee. At least here in Colorado its that easy. You will need an EIN if you don't already have one. I highly recommend it.
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But what about the state default rules? I don't really want to get screwed by some dumb rule.

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Steve Connally said:
Well. That's a fuzzy area. I'm an employee according to the boss but I'm cash. No payroll. There lies the gray area when I get hurt. The two times I have used my own insurance and actually got docked hours when I was at the dr getting stitches. Pretty much bs imho but.. Then if I screw up really bad will he cover me or will I be liable.? It's really fuzzy. I'd almost rather be on payroll but he says he can't afford the payroll tax on my income. Funny how it works because I haven't been paid for several weeks. He's in to me for a large amount.
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Don't get me wrong, but you are jeapordizing yourself, your family, your coworkers and the homeowners by accepting all cash payment for regularly working. The payroll taxes that the employer has to pay are matching for social security and medicare. All the other taxes are out of the employee's wages. You are not getting anything toward your social security either. Worker's compensation insurance is an expense the employer pays all of though. Which he obviously does not have. If you get hurt badly or worse, who is going to take care of you and your family? The guy who only wants to pay you cash and only when he feels like paying? I don't think so. If you continue to work with that payment arrangement, you have no right to complain about it. You know you are worth more than that and so is your family. You can stand up for yourself and should.
 
owScott said:
What is a state default rule? Is that a Iowa thing?
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I googled how to get an llc and it came up with an answer Iowa specific(ish). That mentions coming up with your own rules, as far as ownership, or go by the state default rules. I'm not sure what I have to worry about having an llc that looks like a sole proprietorship.

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A LLC with one person, is a sole member LLC. Its taxed the same as a sole proprietor. A LLC limits your liability by being its own entity. It protects your private property. There are rules. You must keep your private money and company money separate. As a sole proprietor you could lose your private assets in a lawsuit ,but with a LLC only company assets are at stake. Still not sure what you mean by rules you need to come up with. I had a lawyer advise me to form a LLC. hopefully I explained it correctly and did not confuse you. Anybody else have a better explanation?
 
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