As your business grows, you realize you can’t do it all. You need more people! Perhaps you only need someone to assist you occasionally. Maybe you need someone who works consistently but not full-time. Or perhaps you need a full-time staff.

Whatever your needs, there are legal responsibilities. A few key points:

First, will you hire as a 1099 or as a W2? Misclassifying an employee as a 1099 vendor can result in hefty penalties! Be sure you know the difference, and the person you are hiring understands their classification.

Second, create an employee manual. Both you and your employees need to know the company policies. You may face legal claims due to inconsistent disciplinary actions or policies.

Third, if you are hiring the person as a 1099 vendor, be sure your contract clearly states your expectations.

Fourth, understand the proper legal process for terminating an employee. Unfortunately, not everyone works out! Terminating someone in the wrong way, however, can lead to costly fines or legal action.

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