I have the idea for a company that pays its partners and other personnel based on a dynamic percentage of the revenue that they generate rather than paying them a standard fixed wage and was wondering how to do so legally, my thought would be doing so utilizing the 1099-NEC. I have supplementary questions about other aspects of the formation of a small business as well that if you could offer your guidance on, it would be very much appreciated. Such as should I go with an LLC or a different business structure? How do I go about establishing the business type I decide upon as quickly and cost effectively as possible? Along with additional follow up questions
2 Answers from Attorneys
Paying a commission (a percentage of sales) is a 1099 NEC
I suggest using a LLC which can be filled in NY in a few days.
These are all great questions but there's no way you're going to get free consultation over the internet on these important items. Starting a business involves having the capital to go forward with your business plan, as you know, and paying for startup costs, and among those startup costs are fees to lawyers and accountants to get you started properly. There are tons of videos on YouTube which answer all of your questions, and more. You have to put in the time and effort and make notes as you watch one video after another and try to figure out how the advice on those videos relates to your situation.
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