Hiring help for reselling: define the work before choosing the label

When the bottleneck is you

A reseller selling steadily from home eventually hits a ceiling: there are only so many items one person can photograph, list, pack and ship in a week. The obvious answer is help, perhaps a friend who packs on Saturdays, a teenager who photographs, or a local person who lists from home. Before anyone starts, two questions matter more than the hourly rate: what exactly will they do, and what is the legal relationship between you?

This guide covers hiring help for a reselling business, using the IRS page on whether a worker is an independent contractor or an employee and IRS recordkeeping guidance, checked November 8, 2026. It's an overview for planning, not legal or tax advice. Employment rules also come from state and federal labor agencies, so talk to a professional before you hire.

Why classification comes first

The IRS says it's critical that business owners correctly determine whether the people providing services are employees or independent contractors. It explains that for employees you generally must withhold income tax, withhold and pay Social Security and Medicare taxes, and pay unemployment tax, while you generally don't withhold or pay taxes on payments to independent contractors. It also says that if you classify an employee as an independent contractor without a reasonable basis, you may be held liable for employment taxes for that worker.

The IRS's three categories of evidence

The IRS says there's no set number of factors that makes a worker an employee or a contractor, that you look at the entire relationship and the right to direct and control, and that you should document the factors you used. It also says someone working remotely is still an employee under common-law rules if you can control what will be done and how. If it's unclear, the IRS describes Form SS-8, which either party can file to ask the IRS to determine status, and says a determination may take at least six months.

Step 1: Define the job in writing

Before you think about classification, write down the work:

• Which tasks: photographing, listing, packing, drop-offs, sourcing.
• Where: your home, their home, a shared space.
• When: fixed hours, or whenever they choose.
• Using whose equipment and supplies.
• How quality is checked.

That description is also the evidence you'll need to weigh the IRS categories honestly.

Step 2: Weigh the relationship honestly

Look at your description against the three categories. Packing in your home on your schedule, with your supplies and your method, points strongly toward control. A photographer who runs their own business, works for several clients, uses their own equipment and sets their own process looks different. Don't choose the label first and fit the facts to it.

Step 3: Get professional advice for your situation

Talk to a tax professional or employment adviser before the first paid shift. Ask about federal and state requirements, payroll if needed, information returns if the person is a contractor, insurance, and any local rules about workers in a home business.

Step 4: Write an SOP for the work

Whatever the classification, help works better with written procedures: how to photograph, how to pack fragile items, how to handle batteries. The standard operating procedures guide shows how to write them.

Step 5: Protect buyer information

Anyone who packs or messages buyers sees names and addresses. Limit access to what they need, don't share your platform passwords, and use any team or sub-user features your platforms offer. Keep personal data out of shared spreadsheets.

Worked example: two kinds of help

In this chosen example, a seller compares two arrangements. The classification column shows which way the facts appear to point, not a determination.

Even in clear-looking cases, the seller should confirm with a professional and keep notes of the factors considered, as the IRS suggests.

Keep the records

IRS recordkeeping guidance says supporting documents such as paid bills, invoices and receipts support your books. Keep agreements, invoices or pay records, and payment confirmations for anyone you pay, along with your classification notes. The tax records manual covers retention.

Family help: Family members helping in the business can raise their own tax and employment questions. Ask a professional rather than assuming informal help is outside the rules.

Common mistakes

• Picking "contractor" because it sounds simpler.
• Hiring before writing down what the job is.
• Sharing account passwords with helpers.
• Paying cash with no records.
• Skipping professional advice to save time.

Describe the work, then decide

The tasks, hours, tools and control you describe determine the relationship, not the label you'd prefer. Write the job down, weigh the IRS categories honestly, get advice before the first shift, and keep the records.