How to hire your first employee (service business edition)
W-2 vs 1099, commission vs booth-rent, and the paperwork nobody warns you about.
· 7/18/2026· 8 min read
How to hire your first employee
The three models
- W-2 hourly + commission — highest cost, most control.
- 1099 contractor — lowest cost, least control, most legal risk.
- Booth-rent — no employment relationship; you rent a chair.
The paperwork
EIN, workers' comp, unemployment insurance, W-4, I-9. State-specific. Talk to a bookkeeper.
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