Today I got my first employee by accident

[JokerCrazyBeatz]

I'm super excited ! Just when I was thinking about needing to hire a sales person b/c I'm admittedly not great at sales haha . I was contacted by someone who said they were impressed by my work and wants to help sell my product on a strictly commission basis .

Ironically I was thinking about the same idea last year but put it on the back burner because I wasn't sure how I'd implement it . Kind of a MLM type sales force based off commission and converting other sales people for more commission. I guess it's time to follow through with the idea .

I want to create a contract to solidify the agreement . Can anyone offer any help on creating one ? Much appreciated .

 

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[Black_Dragon43]

Is this your first time employing someone? If so, have you considered getting this contract drafted with an attorney? (this can be a one time cost, after you have a contract, you'll easily adapt it and change it yourself as needed for all employment related affairs). If you'd like a cheaper alternative than that, I'd suggest taking a free (or even paid) template (just google it), read it, and see if there's anything you'd like to add to the terms. I doubt many people here are legal experts - I always go to speak to an attorney if I'm not sure about something, or I can't find enough online.

However, do consider that your job as an entrepreneur is precisely in being able to solve these problems by yourself - find the right people and the resources you need to solve the issues that arise.

 

[JokerCrazyBeatz]

Thanks ! And yes it's my first employee I wasn't sure if I had to take any action legally or if I could just google a contract and adapt it as you stated .

 

[Black_Dragon43]

Thanks ! And yes it's my first employee I wasn't sure if I had to take any action legally or if I could just google a contract and adapt it as you stated .

It depends on your country. In some countries you have to pay taxes on the salaries of your employees, in others you don't. There may also be special procedures - such as being required to submit the contract to some state agency (at least you are in my country), etc. You should check all this with an accountant & attorney just to be sure. Try to find small lawyers and accountants - the smaller the better. NEVER go to the big companies, they will treat you like shit (well you are shit for them, because you don't represent a significant income to them) and take all your money too.

You don't need the best at this point. You just need anything - even a bad one. As you start earning more, you can move to better and better support staff.

Also ideally, you should only be employing if you're already earning money (esp. if this is your first business).

 

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[JokerCrazyBeatz]

It depends on your country. In some countries you have to pay taxes on the salaries of your employees, in others you don't. There may also be special procedures - such as being required to submit the contract to some state agency (at least you are in my country), etc. You should check all this with an accountant & attorney just to be sure. Try to find small lawyers and accountants - the smaller the better. NEVER go to the big companies, they will treat you like shit (well you are shit for them, because you don't represent a significant income to them) and take all your money too.

You don't need the best at this point. You just need anything - even a bad one. As you start earning more, you can move to better and better support staff.

Also ideally, you should only be employing if you're already earning money (esp. if this is your first business).

It depends on your country. In some countries you have to pay taxes on the salaries of your employees, in others you don't. There may also be special procedures - such as being required to submit the contract to some state agency (at least you are in my country), etc. You should check all this with an accountant & attorney just to be sure. Try to find small lawyers and accountants - the smaller the better. NEVER go to the big companies, they will treat you like shit (well you are shit for them, because you don't represent a significant income to them) and take all your money too.

You don't need the best at this point. You just need anything - even a bad one. As you start earning more, you can move to better and better support staff.

Also ideally, you should only be employing if you're already earning money (esp. if this is your first business).

thank you , this helped me alot . I'll do my research and set it up !!!

 

[CareCPA]

If you're in the US (I can't tell by your profile), then you just added another layer of complexity by having to file payroll, unemployment insurance, state and federal tax withholdings, etc.
UNLESS, you can legitimately structure it as an independent contractor position. The IRS has a list of criteria (called the 20 factor test) for deciding if someone is an employee or an independent contractor: https://www.irs.gov/pub/irs-utl/x-26-07.pdf

 

[U2ForNow]

I'm super excited ! Just when I was thinking about needing to hire a sales person b/c I'm admittedly not great at sales haha . I was contacted by someone who said they were impressed by my work and wants to help sell my product on a strictly commission basis .

Ironically I was thinking about the same idea last year but put it on the back burner because I wasn't sure how I'd implement it . Kind of a MLM type sales force based off commission and converting other sales people for more commission. I guess it's time to follow through with the idea .

I want to create a contract to solidify the agreement . Can anyone offer any help on creating one ? Much appreciated .

I would not get a contract done by an attorney, etc. If you really want to, contact an labor law attorney, but the expense can be high. I employee a lot of people and think the best thing to do is come up with a commission agreement that you can both agree on. Perhaps agree to a 1099 for 90 days. You can always W4 that person later. Many sales people work on 1099's.

If you have any questions, you can message me or post it here and I will try to help.

 

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[GameOver]

Yeah agree, if in the USA make him a 1099 / contractor if you can. Don't have to worry about all the usual nightmares that way. I'd totally spend $150 bucks on a quick conversation with a lawyer if I were you... will be well worth it to avoid costly problems later-on.