Legal Help for Auction Site

**Baby Boy** · 08-31-06, 05:33 AM

I need this one everybody, what do I mean? Well none other then your help please.

I've been up a majority of the night, its 5:05am in the morning and I have been hunting all around for legality resources for hiring employees.

I plan to write up a PDF fully on this issue and I'll add it later on to this post in a day or two BUT here is what I am having problems with.

PayCycle

I was afraid of trying to figure out tax deductions and such until I found PayCycle, this and QuickBooks together could save me a headache. What I need to know is has anybody had any very good experience with PayCycle?

State Tax Deductions

At the same time, it [PayCycle] has the option of state tax deduction, but the purpose is for the auction site I am starting and I am hiring employee's from all over the USA and not in just one general state. What do I do about state taxes, how would I go about this?

Maryland Incorporated

As it be, I am incorporating my auction site in Maryland. I understand I live in Delaware and the famed Delaware incorporation rules, but I feel as if Maryland would be better seeing that I have plans to move to Maryland later this year and such, why not incoporate there and get used to taxing and stuff there. Is this a bad thing to do?

Employment Applications

Another issue, I am hiring people through-out the U.S.A. as I've said but the only problem is that some could be in other states, what do I do about the whole employment application thing. Do I have to obtain employment applications for the state the person is in or can I fax or email or even mail them a copy of the Maryland employment application to fill out and fax back to me?

Employee Handbook

Another legal problem that could be good for the employee's, the handbook. I don't even know where to start, how do I start on this and what should I contain in it... HELP PLEASE!?!?!?!? on this one.

Background Checks

Easy part, although it may feel privacy pirated, can somebody please tell me a site where I can purchase in bulk (if you have to purchase in bulk) background checks on people so I can run background check's and such on employee's?

Tax Forms

If its one thing I have learned tonight, its taxes. Atleast I have a stable and mental understanding of what exactly a W-4 is and know that its a necessity along with the employment application (in order to input into PayCycle to know how much tax to deduct.) I also got somewhat of a knowledge of W-2's and how they effect people (and this is a good thing about PayCycle, their system is automated so it'll automatically fill out this form, I print it out for each employee and send to them.)

My only problem is Form 940 and 941, I understand 941 is for quarterly filing and 940 is for annual filing, but what are the purposes of both of these.

Employee's I Need

Another thing is what kind of employees I am going to need, right now I have:

1. Human Resource Manager(s)
2. Accountant(s)
3. Customer Support Representatives (Atleast 5 to START)

Now, 1 and 2 I don't need right now, although the company is going to be serious on taking on eBay and Bidz.com possibly, its too small to even need them, I can do the Human Resources by myself (I have enough of the knowledge) and an accountant isn't necessary cause not alot of money is transacting right now (except payroll which I can do.)

Employee Timing

Here is a major downfall, employee's from all over... is there anyway that I can possibly track to see how many hours they worked (like been online and gave support.) I know this is bad because a online timeclock won't work, they can just clock in and let the computer sit for the day and their making easy money.

I was going to pay hourly, but should I seriously consider a stronger pay method (like pay per ticket or whatever?) Or should I just say the heck on it all and just find employees that I can associate with once in a weekly basis that have computer access and such (basically employee's from Maryland.)

Benefits

Its straight forward for this, paid vacation, sick time and funeral leave are fine with me. What other benefits do I need to offer, 'em, what kind of compensations (and don't say medical benefits, cause ain't no way in heck unless they self-inflict can they get hurt by seated at a P.C.)

Thanks

Alright, final note, thanks for everybody reading and helping if you have. I will be posting in a few weeks an post looking for employees for Customer Support Representative, and trust me, if this cash flow note idea works out for me as a freelance thing... I'll be using that money to pay the CSR's (and if I can figure out a legitimate way of being able to track employee's times, it'll be an hourly pay of... GET THIS, $12.50 an hour... so be legitimate please if I do hire somebody from here, not saying you won't, just noting.)

**csmaster2005** · 08-31-06, 08:57 AM

ok, first of all, dont incorporate in maryland. Delaware is much better, and it is where I'm incorporated, and I live in Texas. You can incorporate in delaware despite where you live, because people everywhere use the internet, so you do not do business in just maryland. Additionally, about employee applications and what not, the only form that you will need to turn in officially I believe i sa W-9 form.

**Baby Boy** · 08-31-06, 11:24 AM

No, its required that employees receiving over $1,500 a year must fill out a W-4 and since I am paying them, I have to provide them with an W-4 and its also said to require a I-9 form as well (pertaining to the law or whatever, the Employment Elgibility Form) and there are some other things I need, but yeah.

Now, about incorporating in Delaware, its a good idea but honestly Delaware is a small state, not that the fact of its size is what is making me not want to incorporate in it, but I have been here my whole life and I am not fond of Delaware's actions (I mean, they just set in a rule for truck driver's who leave their truck's running for 3 minutes means they have to shut it off or be fined $1,000... really, truck driver's can't even leave there trucks running to go into a store or even get gas.)

Anyway, I'm still going with incorporating in Maryland but thanks for your tip and assistance casmaster, appreciate it.

**csmaster2005** · 08-31-06, 03:22 PM

No problem, but as I'm sure you know, something like 60% of forutune 500 companies are incorporated in delaware I believe. Also I wouldnt really be against the whole truck driver thing... it wouldnt hurt them to turn it off, it takes seconds to do and the loss outweighs the benefit by far.

**Baby Boy** · 08-31-06, 03:31 PM

Yeah, that's another thing the whole 60% of Fortune 500 Companies being incorporated in Delaware, same as well as it being said that (I believe it is estimated) 80%-85% of Fortune 500 Companies also utilize VeriSign's SSL certificates.

And about the whole truck driver issue, I agree, but 3 minutes, I mean make it a more solid number like if their getting out of their truck for more then 5-10 minutes I see logical, IDK though, my dad is a truck driver and I figured it'd probably concern his ability to whatever. But its him, not me.

ANYWAY...

Thanks again csmaster, anybody else have input?

eldo · 09-27-06, 01:36 AM

I think you'll need to sort it out with an expert and see the benfits from in maryland or delaware.

**Baby Boy** · 09-28-06, 11:14 AM

Just out of a pure curosity, can I ask what the fascination of incorporating in Delaware is? Like, I understand less paperwork and taxes and everything... but when you look at some of Delaware's tax rates, you see its just about the same as every other incorporable state tax fee.