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Can I allow a marketing consultant to participate in a profit sharing plan? In NYC.?
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05-07-2008
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Can I allow a marketing consultant to participate in a profit sharing plan? In NYC.?
I am about to bring on a marketing consultant who will help launch a new product from my sole propietorship LLC (I havov employees, only contractors and consultants). I would like to incentivize by offering this person a profit sharing plan, so that every time the company makes $X profit in a given month this person gets a small percentage of $X in addition to this persons monthly retainer. Are there any serious legal issues, liabilities or accounting issues? Especially with drawing the line between employee and independent contractor? I am in NYC which is notoriously tough. Thanks.
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