Do small businesses without employees stay that way?


My answer to Do small businesses without employees stay that way?

Answer by Ken Larson:

Bringing an employee onto a payroll is a major step. The company assumes workman’s compensation, tax and other obligations enacted by federal and state law.

Many business use contractors, keeping only the owners on a limited payroll to avoid the self employment tax at year end. Contractor payments are reported to the IRS on a 1099 form once a year and the obligations cease there.

Companies involved in products are often re-sellers or have other firms licensed to work with them in producing and distributing their goods.

Viewing the number of employees statistically in this high tech, automated and synergistic age and drawing conclusions regarding success and revenue may be very misleading indeed.

Do small businesses without employees stay that way?


About rosecoveredglasses

2 Tours in US Army Vietnam. Retired from 36 Years in the Defense Industrial Complex after working on 25 major weapons systems, many of which are in use today in the Middle East. Volunteer MicroMentor. I specialize in Small, Veteran-owned, Minority-Owned and Woman-Owned Businesses beginning work for the Federal Government. MicroMentor is a non-profit organization offering free assistance to small business in business planning, operations, marketing and other aspects of starting and successfully operating a small enterprise. You can set up a case with me at MicroMentor by going to: key words: "Federal Government Contracting"

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