buying an office cleaning company
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Would like to hear from someone who is or has had a cleaning company. I'm considering buying a business which has 1099 employees doing the cleaning. What is my liability exposure in this case? Thanks Wendell |
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Wendell-
I owned a janitorial company for 30 years, sold out 2 years ago. Please feel free to call me, and let's set up a lunch or coffee.
John Terrell (248) 224-2188
when's the best time to call?
ww
Call any time. It will either be convenient or it won't and we'll reschedule. :-)
Wendell,
I'm an attorney and, among other areas, my practice includes business purchases and sales. I'm also well versed on your specific question and, in fact, I had jury trial against Amerisure involving the employee (W-2) versus independent contractor (1099) issue. I'd be happy to speak with you and possibly even meet with you and John (whom I've known for several years) for coffee or lunch.
Eric Glick (248) 645-1700
Thanks for the info. Look forward to meeting you and John at the meeting.
wendell
Wendell:
I am a CPA and work with small businesses. The IRS has a series of criteria they look at in making their determination of proper classification of employees. I have seen them recharacterize independent contractors as employees, which makes the company liable for employer taxes plus employee withholdings. The manner in which you make the purchase of the company (asset vs. stock purchase) may provide you with some protection from liabilities for potential recharacterization of past services, so you may want to explore this.
Thanks! I appreciate the input.
wendell