Birddogg to birddogg payment method

I’m a BD receiving x and have to pay sub BD’s a finder’s fee.

1099, w-2, $? should I have them sign an Independent Contractors agreement initially and a fee agreement per referral thereafter to CMA for Uncle Sam. My LLC is new so I want to do things right

which IRS form (if any) should I send them at the outset, or is that not my responsibilty?

since your LLC is new, you may want to consider using an accountant run your taxes…

I AM NOT AN ACCOUNTANT and this is NOT TAX advice…you may want to look at the irs.gov site for the 1099-MISC

Chris

A 1099 will handle the Non taxable payments however make certain the BD isnt an employee. The Government has a test to determine employment status and the main point is if you direct the person to do the task being paid for.

I am thinking DaveT is the expert on tax not certain…

As for an agreement, agreements are always good to have… Especially in a shared revenue situation. Anything from a TIC to a simple one page contract. Careful that your bird dog isn’t violating any department of real estate laws by negotiating on your behalf or selling too many contracts a year.

Just things to think about…

Happy Investing

Michael Quarles