Hi everyone,
I have a friend that knows many people; he is very popular. I was thinking about talking to him about referring people over. People only help out if they have an incentive, so I was thinking about paying him a certain percentage out every commission check I receive as a result of each referral. Does anyone have any suggestions as to how I can pay him? Should I pay him cash? check? How much percentage should I pay? What would be the tax consequences or what would I need to do to avoid tax problems? Should I list him as an employee? By the way, most of the referrals would be for trucking insurance and liquor stores, etc.
Thanks. I appreciate any advice
I have a friend that knows many people; he is very popular. I was thinking about talking to him about referring people over. People only help out if they have an incentive, so I was thinking about paying him a certain percentage out every commission check I receive as a result of each referral. Does anyone have any suggestions as to how I can pay him? Should I pay him cash? check? How much percentage should I pay? What would be the tax consequences or what would I need to do to avoid tax problems? Should I list him as an employee? By the way, most of the referrals would be for trucking insurance and liquor stores, etc.
Thanks. I appreciate any advice