What is the biggest mistake customers make?

Independent contractors or customers?

• I'm starting my own catalog company and would like to have people sell it for me, but I'd ideally like them to sell in their own name, the way Avon reps do. When an Avon rep collects a sale, they collect the sales tax and then Avon pays it to the state, but then the Avon rep still gets invoiced that amount from Avon when they make the order. When the rep gets money from their customers, they get paid in their own name. A customer writes the check to the Avon rep. I like this because it makes the rep completely liable for their own actions. Now I am creating a catalog and my product needs to be ordered because it's a personalized product. I don't know if I should have my sales reps as independent contractors and collect the money my company's name. However, this still leaves us liable to the customers. So if a rep makes a mistake, we have to correct it. Or I could make everyone of my reps get their own seller's permit, and in essence would not be my rep but my customer. This would deter people from selling I believe. So, can anyone give me advice on how to approach this? I'd really like to do what Avon does, and how can I do that? How does Avon collect and remit taxes to the state and still have their reps independent and customers at the same time?

• Answer:

  I think that your best bet would be to have your sales people as Independent Contractors. They will sell items and collect payments, including taxes, and turn it in to you. You will pay them; and at the end of the year issue all a 1099.