When Inventors Hire Employees

Dear Rich: I patented a car accessory and outsourced the manufacturing. Now I'm getting ready to distribute it and I'm considering hiring a cousin to manage distribution. What kinds of concerns should I have about hiring someone? Our suggestions have to do with paperwork and taxes. If you're providing any confidential or proprietary information -- or alternatively, if your cousin is creating any proprietary information -- you'll want to have an appropriate independent contractor agreement. (You can read the details about inventors and employees here.)  As for taxes, here is an article explaining what's needed when inventors hire employees. (And here's more information on inventors and taxes.) Also, we hope you and your cousin are a good match because one thing they say about hiring relatives is that they're easy to hire and tough to fire.