Deciding whether to classify your tutors as W-2 Employees or as 1099 Independent Contractors is an important decision that needs to be carefully considered with the help of a qualified employment attorney.  Improperly classifying tutors can be a very expensive mistake and can cost you tens of thousands in legal fees and hundreds of thousands in back payments. Ever since the Great Recession, reports from the front lines indicate an uptick in government agency audits centered on employee misclassification issues. Our tutoring company was audited back in 2007 by the Department of Economic Security, and we decided at that time to convert to a W-2 model when our attorney advised us that our likelihood of success was minimal. Continue Reading »

One of the first decisions that tutoring entrepreneurs have to make is whether they should start their own business from scratch or invest in an existing franchise. I spent several months laboring over this decision, and spoke with eight leading franchisers, scores of franchisees, independent tutoring business owners who were willing to speak with me, as well as consultants and franchise brokers. While I ultimately opted to start my own company from scratch, there were some legitimate trials and tribulations that occurred along the way that I am convinced would have been eliminated within a franchise ecosystem. In this blog article, we will look at both options and discuss the advantages of each decision. Ultimately a number of personal factors will come into play. Risk tolerance, access to capital, lifestyle choices, and desire for entrepreneurial freedom depend upon each individual and are different for everyone. Continue Reading »