First, the bottom line: When you're hiring someone to work for your eBay business, you have two options: You can hire an independent contractor, sometimes known as a consultant or freelancer, or you can hire a full-fledged employee. This decision affects your tax and legal obligations, the way you run your business, and your profitability. Once you’ve decided which type of worker fits the position you hope to fill, your next task involves choosing the right person, then dealing with tax forms and other reporting and paperwork requirements.

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