How do I know if I have a legitimate and feasible business plan?

I want to search for companies hiring 100 commission salespeople who would be independent contractors. I would get a contract. I would then have my company advertise the same job 100% commission independent contractor. I would then take a portion of the commission from the producing company, acting as a middleman/broker/recruiter. This is it in theory. Is this legitimate? Would I have to disclose this to either party? I would assume I should.

Asked on August 27, 2016 under Business Law, Pennsylvania


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

It is legal to do this IF you disclose it to the other parties, as you apparently know you should: there is nothing illegal about being a middleman or subcontracting out work, and you can often provide real value in that role, by helping put salespeople together with companies, providing management or back-office support, etc. But if you don't disclose what you are doing, especially to the hiring company, then if they hired you because they believed you were personally doing the work but you're not, you have committed fraud (lying about an important fact to get someone to do business with you). So build a business plan where you do provide some value to the other parties and go with that.

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