September 28, 2010
I am in the process of getting everything in line to kick off the business.
So far I have an 18 year old that will be my roof guy. He is a close friend of mine that I coached in football.
I do not want to deal with all the payroll and tax stuff, so this is what I plan on doing.
I will make him a 10% partner of the LLC.
He will receive 10% of the profits and I will receive 90%.
He will receive 1/8 of the bid price for the roof for his labor.
1/4 of the bid price will go to me.
1/4 will go to chemicals and other parts/needs
1/4 will go towards the business. (minus other over will equal profit)
the other 1/8 will go to who ever "sells" the job.
So if we do a house for $400.
If my buddy sold the house.
He will end up with $100..
I will end up with $100..
$100 will go towards chemicals and other
$100 will go into the business.
If we are both "partners"... we both be business owners and have to file our own taxes at the end of the year correct? I will not have to actually pay him and myself a payroll check with taxes already deducted?
Please feel free to shoot this full of holes.. that is why I am asking.

I know some out there will ask why I dont just do the work myself and pay this guy a minimal amount to be the ground guy... but the reason is.. Im about 6'2 340lbs.. and I have no plans on climbing any ladders anytime soon.
Also, in terms of paying solely on commision.
How is that taxed, or contracted?
If I have a couple of people who want to sell for me, and I offer them an 1/8 of the bid price for a sell.. how does that need to work?
Thanks guys..