I am in Pennsylvania
I have started a video game design company, and will most likely be forming an LLC. I will be doing the majority of the work myself, including all the day to day business related tasks, all website design and upkeep, all the game programming, etc.
However, a friend of mine, who I have worked with in the past on some gaming projects (non-profit projects, just for fun), will be doing the majority of the art related tasks. He also will have a significant amount of input in the areas of game design, game features, ideas for new games, etc.
So here's my question(s):
Would it make more sense to hire him as an Independent Contractor or actually bring him on as a member of the LLC?
My initial thought was to have him as an IC. However, he will most likely be working with me fairly often, but definitely not on a set schedule. Also, the services he will be providing will not always be the types of cut-and-dried tasks I could put in a Statement of Work. For example, he may just call me out of the blue and say "Hey, I have an idea for a new game." I may like the idea and decide to use it. I did not want to hire him as an employee since his level of involvement is bound to fluctuate. Also I don't need the headache that goes with hiring employees just for one guy working on an unset schedule. Not sure if it's possible to create a Statement of Work that would cover things as vague as this, or that would create kind of an open-ended on-going agreement(if that even makes sense). As for payment, I was thinking of paying him commission on games that sell based on the amount of artwork/input he had in them.
However, since his level of involvement will be fairly significant, and I may even discuss business decisions with him, I wondered if making him a member may be the more appropriate course of action. I've done a fair amount of research on LLCs, Corporations, etc., but I definitely don't consider myself an expert by any means. So any advice I can get, or suggested reading, websites, etc., would be greatly appreciated.
Also, let me know if I can provide any additional information that may clarify my situation. I'd like to thank in advance anyone who responds.
Sincerely,
GameGuy
I have started a video game design company, and will most likely be forming an LLC. I will be doing the majority of the work myself, including all the day to day business related tasks, all website design and upkeep, all the game programming, etc.
However, a friend of mine, who I have worked with in the past on some gaming projects (non-profit projects, just for fun), will be doing the majority of the art related tasks. He also will have a significant amount of input in the areas of game design, game features, ideas for new games, etc.
So here's my question(s):
Would it make more sense to hire him as an Independent Contractor or actually bring him on as a member of the LLC?
My initial thought was to have him as an IC. However, he will most likely be working with me fairly often, but definitely not on a set schedule. Also, the services he will be providing will not always be the types of cut-and-dried tasks I could put in a Statement of Work. For example, he may just call me out of the blue and say "Hey, I have an idea for a new game." I may like the idea and decide to use it. I did not want to hire him as an employee since his level of involvement is bound to fluctuate. Also I don't need the headache that goes with hiring employees just for one guy working on an unset schedule. Not sure if it's possible to create a Statement of Work that would cover things as vague as this, or that would create kind of an open-ended on-going agreement(if that even makes sense). As for payment, I was thinking of paying him commission on games that sell based on the amount of artwork/input he had in them.
However, since his level of involvement will be fairly significant, and I may even discuss business decisions with him, I wondered if making him a member may be the more appropriate course of action. I've done a fair amount of research on LLCs, Corporations, etc., but I definitely don't consider myself an expert by any means. So any advice I can get, or suggested reading, websites, etc., would be greatly appreciated.
Also, let me know if I can provide any additional information that may clarify my situation. I'd like to thank in advance anyone who responds.
Sincerely,
GameGuy
