107. 1099 vs W-2: Compliance and Contracts for Cleaning Businesses with Andy Agarwal from CCDRA

The Freedom Formula Podcast: Achieving Financial, Location and Time Freedom

In this episode Neel and sits down with Andy Agrawal of Weekend Maids, who is also part of the CCDRA (California Coalition of Domestic Referral Agencies). Andy has been running the company for the last 15 years, but it's a family business that has been around for 36 years.

Neel and Patrick discuss the importance of compliance, particularly in regards to cleaning companies and properly classifying themselves as referral agencies rather than employers. Among other things, they talk about:

- the importance of a solid contract with your service providers and why you don't just want to pull a form off Legalzoom

- why separate bank accounts for operations and for collecting fees and paying contractors is crucial in the eyes of the IRS

- the rights of contractors, which includes the ability to decline work you offer them or to renegotiate directly when they arrive on the job

You'll also hear about the reality of fines and audits and why these matters have to be taken seriously for anyone who wants to stay in business long-term.

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