<prompt> Human: HiSo we are looking to have a nanny to help out over the next few months to help out. My understanding is that she needs to be W2. Illegal to do it otherwise. She has an LLC setup and wants to be paid as a 1099. My understanding is that she misunderstands the whole process.Regardless if she has an LLC or not, she is still working 40 hours a week for us, making her a full time employee. Otherwise, if we are paying her business, then we would just pay her for services rendered like any other service with sales tax, etc. But she would need to show other clients?In either case, we cant be giving her a 1099 form. She wants to do it as 1099 to write off taxes and what not. Im more than happy to reduce her hours per week to 23 days and pay her daily for her services and she can fill up the other days with other work. Am I thinking about this whole thing correctly?Assistant: She is correct. It also makes it way easier for you because as far as I know you just pay her and send a 1099 at the end of the year. No withholding taxes or benefits or anything. You should consult an attorney or cpa to advise you. Human: My understanding is that even though she is setup as a business, but we are her only client, she is still viewed as an employee by the law.She does baby sit afterwards.Its hard to know where the line is between household employee vs business doing a service?  <response>: Id talk to a CPA about this. I think youre right but I think this but we are her only client, she is still viewed as an employee by the law.Isnt the right reason. I think shes an employee because youre dictating when she works and Im guessing youre giving her the tools to do her job with. Im not even sure what shed write off in taxes but thats not really the question.This isnt like hiring a contractor that will come into your house whenever they have the time to come and use their tools to do the job.Id definitely spend a little money to ask a professional so you get this right.Edit: Also, Im not an accountant or a lawyer. Neither are most of us here. Right now the youre right post and the shes right post are equally upvoted so its not clear to a layman. Im all for asking questions on the internet but this isnt one of the best cases for it. 