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"But, I didn't know."

James owned a successful construction company, utilizing some of the best subcontractors around. However, one of those fantastic subs was relieved of his duties when he came to work drunk for the third time in a row and he decided to file for unemployment benefits.

This subcontractor thought he was entitled to them, even though he wasn’t technically James’ employee. The unemployment office told the terminated subcontractor that he may have been compensated incorrectly….maybe he really was an employee. Maybe this deserved a second look.

So, they audited James' construction company and found that most of the “subcontractors” were, in fact, James’ employees.

James had to pay a hefty amount of penalties, going back three years, and re-file every payroll tax return for those three years.

Lessons are effective no matter when they’re learned. It just would have cost a lot less if James had learned his lesson BEFORE the audit.

We have a passion for teaching entrepreneurs and allowing them to learn from our mistakes. That’s why we chose to create Start-Up School….why make needless mistakes and learn the hard way when we can run interference for you?

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