is it more cost effective to hire an employee or a sub contractor?

    I own a fence and deck exterior siding etc business and need to address the direction of the growth of my company if anyone has the time to advise I'd be grateful...

    +1  Views: 911 Answers: 6 Posted: 8 years ago

    Whatever you do, make sure you are bonded adequately.

    6 Answers

    If you are a small company that's just trying to grow, I would start with  hiring a subcontractor to do the job.  You may have to pay a little more than you would an employee.  However, you would not have to deal with an employee's health insurance, unemployment insurance, payroll and tax withholding requirements.  When time is tough, you don't have to fire the employee.  All you would need to do with a subcontractor is not to renew the contract or give him additional work.

    Later on when your company grows a little bigger and has become more stable, you can then hire employees to work for you.


    Thank you Chiangmai!! He didn't seem too pleased with my answer...yours is much better! Tnx! ;)

    This is not a business advisory site. This is akaQA a general inquiry site. Try googling a business forum for this or try here>>>


    apparently there are a few that are able and interested in giving a quick answer and I've appreciated it but thanks for clarification as to the purpose of this forum. Question for you are you on the board of directors of this site or just highly concerned about it's developement?

    Did you investigate the link I sent you or were you not interested in input from peers???

    We recently had a member suggest that we might be at risk of being sued for potentially mis-informing others...playing it safe there is all....

    I've let the book know you are just a volunteer and not someone he's paid for an answer.

    You have too many names as is. No name changing for you!

    I like Dude... how about The Dude and erase the rest?

    He'll have to be Ghost Dude.

    That is cool.

    A lot depends on how you want to structure your company. Either approach can be accomodated within a formula for customer billing purposes. But, structuring your company to utilize sub-contractors will circumvent a lot of issues such as offering personal insurance, which is something employers are now going to have to take into consideration nowadays.

    There are so many variables in this you are best advised to talk to a very experienced accountant for a start.Employees can be such a drain in certain circumstances then on the other hand it's not always easy to find subbies for the work & there is usually a high turn over of subbies because they will readily move on for more money. Most successful construction businesses will employ both.Employees in key positions & subbies in other areas.Finding the balance is the hard part.

    Dude I'm not sure why you are so aggressive but yes I appreciate the time you took to send me the link and I will certainly pursue it.


    This is a general question and answer site. For the most part, we just Google answers for people who do not know how to Google. You need to speak to someone who has taken a course in business management. People like that charge for their advice. This is a free site. You get the best that the members can offer based on personal experience. I do not see anyone being aggressive. I see volunteers helping to the best of their abilities. They all have names by the way and not one of them is named "dude".

    Hey colleen thought I'd ask if you are grumpy like Dude and isn't it easy on line to be passive aggresive hiding behind the safety of the internet... I thought the answers I received from those that took the time to give me a little of their time with out the attitude were well thought out and I well take the time to thank them "THANKS"

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