Ownership and people

Your first hire: what your lawyer will ask

Tellbrief ·

For education only. Not legal advice. Tellbrief is not a law firm.

Your first hire raises questions you may not have needed to answer before: how the person is classified, who owns their work, and what they were promised.

Contractor or employee

The IRS says:

“The keys are to look at the entire relationship and consider the extent of the right to direct and control the worker.”IRS, Independent contractor (self-employed) or employee?

Be ready to describe how the work will actually be done.1

Facts to have ready

Who owns their work

If the person will create things the business depends on, ask your lawyer how ownership is documented. See who owns what your business built.

Questions

Can I just call someone a contractor?

That’s a question for your lawyer. The IRS guidance quoted above looks at the entire relationship.

I promised equity in a text message. Does that count?

Bring the message to your lawyer.

Get your lawyer up to speed before the first call

About 30 questions, most of them one tap, free and with no account. Tellbrief turns your answers into a brief your lawyer can work from, and you keep a copy.

Start your brief →

For education only. This article is general information for founders, not legal advice, and reading it doesn’t make you anyone’s client. Tellbrief is not a law firm. For advice about your situation, talk to a licensed lawyer.