So, there is no guidance on the internet about whether giving an independent contractor say 5% of the member points towards the year-end distribution of profits as a non-managing member is problematic. Would the labor department care? (Ie. would this make an IC look more like employees?) The IC would not be contributing any capital to the LLC, just receiving a share of the profits.
It'd be a rather unconventional arrangement and it just feels hairy...
If problematic, any thoughts on whether, as an alternative, giving an IC a bonus based on % of profits make them look more like an employee?
Thanks so much for any input! Much obliged.
It'd be a rather unconventional arrangement and it just feels hairy...
If problematic, any thoughts on whether, as an alternative, giving an IC a bonus based on % of profits make them look more like an employee?
Thanks so much for any input! Much obliged.
