If they are filing a 1099 I would imagine everything is above board as that would be too easy for the IRS to jump on with that documentation.
The only way I can use someone without a 1099, is to hire them directly, pay them myself and then submit an invoice and get reimbursed. And it's a real hassle to get reimbursed
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It's so much easier for me to use this person. I request a work order for him at a specific price that he sends a quote in writing...then it goes into his queue, he does the work, sends in pictures of completed work with the invoice and I don't have to do anything except make sure to submit the info for the work order. He lets me know if there's any hold up that I need to get involved in....which isn't very often.
At my own house...we pay cash paper money after the work is done.
Having had someone with a business and having had someone that I'm not sure is legal....I'll take the one that may or may not be legal. It's been my experience around here, that those who work the hardest and quickest ...may or may not be legal. We have found out about them with the help of one of the priests at our church.