Posted By Andy Graves on 11 Jul 2011 04:33 PM
That is the way it is Kelsey. The law is ridiculous, but that is it until it gets changed.

But, the laws allow attorney's to get referral fees... isn't that interesting!

Andy,

How can they control this? If you send a 1099 to an individual, how would it be any different than a sales commission? I'm in Georgia, so I guess it's a non issue for us, but it just seems like this would be impossible to enforce.

All would be fine until I got caught doing it. We almost put out some literature stating that we gave referral fees. Imagine that, we would have been screwed because it would have been in writing.

Posted By Miles Crowe on 21 Jul 2011 01:16 PM
Andy,

How can they control this? If you send a 1099 to an individual, how would it be any different than a sales commission? I'm in Georgia, so I guess it's a non issue for us, but it just seems like this would be impossible to enforce.

Miles:

They've thought of your idea in Michigan and have laws in place to circumvent same. If you do remodeling here, your salesperson must be licensed. It is a specific sales licence, not a contractor's license, and the salesperson must be employed by the contractor although a 1099 relationship would probably be fine.

So if your customer deserves a "sales commission", they had better be a licensed slaesperson.

Looks like you don't need a license. Page 7, last bullet.

Joe

P.S.:

Good to see you here again.