Re:From idea to replacing full-time salary in 4 months
by tptacek on Monday April 16, 2012 @09:43AM
(#3847296)
Becoming compliant isn't a paperwork task. It's going to be expensive. He hasn't been withholding any taxes; he could end up owing as much as $1000 for each prior month he failed to do that.
The city and state his business is headquartered in (he's in DC Metro so it could be any of a bunch) is also going to tear into him for unemployment taxes and fees. We had drama with this even though we don't even have independent contractors.
It by no means signifies a guaranteed success, but it is definitely a good sign when an entrepreneur recognizes legitimate criticism about issues that could make or break his business and actively seeks to address them.