How to Hire an LLC Employee

A LLC or Limited Liability Company is a type of business structure that protects its owners and managers (known as partners) from legal liability and also offers tax benefits that are not typically available under other business organizations such as corporations. Hiring employees under an LLC business requires outlining and delineating the job description in a clear format, advertising the open position in trade publications and job boards, qualifying applicants, and adhering to applicable state and federal employment guidelines.

Things You'll Need

• Advertising
• Job description
• Employment contract

Instructions

1. Define the job requirements and responsibilities. No matter what type of business is hiring, the taking on of staff must be beneficial to the bottom line or sustainability of the company. Even if the position is known a loss-leader--a position that will cost the company more in payroll in benefits than it realizes in productivity--applicants must know exactly what skills and experience are required. Moreover, the company should be aware that it is not producing a redundant position or one which undermines other existing positions.

2. Advertise the position. Utilize job boards, employment sites, state employment clearinghouses, and trade publications and/or websites to list the position. Along with the job description should be a company profile and background. If the position is for a partnership, networking among like industry/trade professionals will be an invaluable part of attracting the best pool of potential candidates. Include with the job description benefits and salary range, along with a statement about the ideal candidate's skill-set, experience and proficiencies.

3. Review resumes and conduct interviews. Read each submitted resume to qualify each applicant based on the resume. Narrow the applicant pool to the most qualified candidates, then conduct a simple search for each over each of the major social networking websites. This will give you an idea of what type of person(s) you are considering and how they conduct themselves outside of their professional life. Once qualified candidates have been identified, conduct phone interviews and then determine which should receive in-person interviews and follow-up interviews.

4. Make an offer of employment. Once the final ideal candidate has been determined, extend an offer of employment. With the offer should be a full explanation of company policy and procedures, accompanied by an employment contract that states the employee's rights and responsibilities, and sets forth all applicable state and federal employment laws relative to the company's business. The new employee should be provided with full access to human resources and compliance departments.

Tips & Warnings

• Be sure to consider physical space to accommodate a new employee, along with necessary productivity tools, such as a computer or laptop, company cellular phone and wireless network card, business cards.

• Put a system in place for reimbursements, collection of receipts and any transactions made during the course of business

• Hiring employees under an LLC to deem them as 1099 independent contractors to avoid tax implications carries significant legal and tax risk

References

• My New Company: Hiring employers and processing playroll
• Small Business Victory: How does it work when I hire an employee?

Resources

• New Hampshire Small Business Development Center