What contracts are required for an Independent Contractor with Profit Sharing agreement?

ehicks727 · 06-23-2009, 08:35 AM

Have any of you hired a programmer who you classify as an independent contractor, but his/her compensation is a profit sharing agreement??

I'm searching through LegalZoom to see which contracts I will need, but wondering if I'm missing anything important.

If you've done this before, can you point me to the important documents??

thanks.

BIG Mike · 06-23-2009, 08:46 AM

Bad place to ask for legal advice - really, you should find a lawyer in your area to sort through the details to be certain everything is legal and binding.

RentItNow · 06-23-2009, 08:57 AM

From experience, this arrangement is BAD! Why? You have a vision for the company and they do not. You can give them shares but make sure they are not voting shares.

ehicks727 · 06-23-2009, 09:09 AM

Quote:

Originally Posted by RentItNow

From experience, this arrangement is BAD! Why? You have a vision for the company and they do not. You can give them shares but make sure they are not voting shares.

This is only one small project... it's not all my eggs. This isn't my company's core business... it's a side project that we are experimenting with. If the programmer can do a killer job with it, then I'm happy to give him a percentage of the profits!

BIG Mike · 06-23-2009, 09:13 AM

Quote:

Originally Posted by RentItNow

From experience, this arrangement is BAD! Why? You have a vision for the company and they do not. You can give them shares but make sure they are not voting shares.

The one time I did this, it had excellent results. In fact, the contractor is now my partner and best friend

06-23-2009, 08:35 AM	#1
ehicks727 HyperActive Warrior Join Date: Mar 2009 Posts: 225 Thanks: 6 Thanked 27 Times in 27 Posts	What contracts are required for an Independent Contractor with Profit Sharing agreement? Have any of you hired a programmer who you classify as an independent contractor, but his/her compensation is a profit sharing agreement?? I'm searching through LegalZoom to see which contracts I will need, but wondering if I'm missing anything important. If you've done this before, can you point me to the important documents?? thanks.

06-23-2009, 08:46 AM	#2
BIG Mike Drunken Greek War Room Member Join Date: Dec 2004 Posts: 9,632 Blog Entries: 1 Thanks: 1,847 Thanked 3,671 Times in 1,070 Posts	Re: What contracts are required for an Independent Contractor with Profit Sharing agreement? Bad place to ask for legal advice - really, you should find a lawyer in your area to sort through the details to be certain everything is legal and binding.

06-23-2009, 08:57 AM	#3
RentItNow Aka: John J. Adams War Room Member Join Date: Jun 2009 Location: Windsor, ON Posts: 917 Thanks: 171 Thanked 184 Times in 158 Posts Social Networking	Re: What contracts are required for an Independent Contractor with Profit Sharing agreement? From experience, this arrangement is BAD! Why? You have a vision for the company and they do not. You can give them shares but make sure they are not voting shares.