Hiring or Subcontracting?

when it's going too well!

[le_gber]

Hi all,

Just thought I'd ask for your input on this delicate subject to see if any of you could give me some pointers.

I've been in business for a year and a half now, and it's getting really well. I am at a point where I need to either hire somebody or subcontract the work to somebody else.

Both solutions are appealing for different reasons but the subcontracting solution would only be helping on the short run as for the hiring, it would require a much bigger initial money input.

Could you give me your opinion as to what your experience with either have been. What are the pitfalls that I should be aware of?

Thank you

Regards

Leo

[choster]

Everyone's circumstances are a little different. Your accountant and lawyer would be able to give you much better depth about the issues involved.

I am surprised to hear you say that contracting is more expensive, though I don't know what country/jurisdiction you are in. Hiring in the US is quite expensive, because of the overhead involved in withholding income taxes and with paying the employer share of Social Security, various insurance, and other payroll taxes. With a contractor you need only negotiate hours, rates, and a non-compete and the contractor or contracting house is responsible for handling their own taxes and liabilities. This is one of the many reasons behind the boom in outsourcing.