what if sub contractor uses contractors tools part of the time?

Question

I was on life support and my brother who is a sub gave a mechanic permission to work on a trailer of mine. Costs were over 900 dollars and resulted in my axles getting broke. I canceled the check. In a letter to there attorney i stated my brother was an employee. I figured that the def. for employee was one who does work for you and gets paid. Just like my gardener. I looked up legal def. and it says one who uses there own tools. I don't remember whether or not he has used my tools before for work so i can't say he never did and be honest about it. Also the complaint was in my companies old name which was a inc. that was disbanded years ago but we do have the same account in that name. Check was written off of it. Judgment was for them but i am arguing that it is our old name and my sole proprietorship can not be held liable. They have put in an amendment to add the real name of the company.

Answer 1

Let me get this right.



According to the mechanic, your brother, acting as your agent, authorized work on the trailer for $900. When signing the paperwork, he may have gotten the name wrong. As your agent, he wrote the check to pay the bill.



According to you, when you returned, you discovered all these things your brother had done in your absence and were horrified. You cancelled the payment on every check he signed arguing that he was not authorized to sign anything so you don't owe. You are using the fact the paperwork is in the wrong name and that you operate as a sole properitor as proof that your brother was NOT acting as your agent.



However, your story has holes in it. Clearly you do have a relationship with your brother. You called him an employee in a letter to their attorney. You are now scrambling to take back that statement because you realize that it makes him sound like he could have been your authorized agent in this situation. I'm guessing that out of all the bills he paid, this is the only one you are failing to pay....



Whether your brother is an employee or contractor is probably not going to change the outcome of this lawsuit. An employee is someone you are supposed to report a W-2 on, pay workman's comp, control their work, etc. A contractor gets a 1099-Misc. That usually matters for tax purposes and with the labor board.

Answer 2

Under law, your account should of been updated with the new company name, along with your business licenses and business insurance. By failing to do so , you are in violation , of local and state and Federal ocupational Business, Regulations. Read your old Inc. Regulations.It will explain it all.Your old Inc. Name was suppossed to be updated with the state incorpporation board.You stand to loose your business licenses ,insurance,and face heavy fines.Under these surcomstances you are held fully Respondsible as the business owner. Start digging into your pocket.You are respondsible for your employees.Furthure more, You can not change corp. name to avoid a debt, It automatically falls onto the sole propritor.Its scam business like you, that has made it so exspensive for honest business men to stay in business,due to all the new Federal, state, county, city, requirements and regulations, that have been added in the last five years,let alone all the new restrictions, and the hellasous rise in Business Liability Insurance rates.I hope the state and Federal incorporation Regulations board catchs up with you, and voids your incorporation, and pulls your business licenses.And fines the hell out of you the sole propritor.

Answer 3

the suited one to ascertain with is the IRS. Contractors/vendors can no longer set the hours of a sub-contractor or they threat them turning out to be an worker. often times vendors/contractors want a individual to be a independant contractor to get around the with preserving taxes (7.5% SSI for one) and you're exceedingly plenty ....... in case you get harm. style of seems such as you're an worker with little to no advantages.

Answer 4

you must pay people for their work regardless. definitions are mostly for tax purposes.

no one loses much sleep over definitions.

if you're not happy with the work, that is a different issue.