If your home based business is online, you may find yourself wanting to hire people to work for you. However, hiring these people (if you do it over the internet) is not going to be the same as your typical employer/employee relationship -- they are actually Independent Contractors. Here is some basic information on hiring ICs. The tax regulations are entirely different, as are the laws. Read up on it!

Thanks for the information srrh. I didn’t know that if you hire independent contractors that there would be a tax imposed on your online home business. Unless you declare it I guess you can just hire somebody online and simply pay them without being taxed. I guess it depends which country and the tax laws apply as well.

Your point about what country it is is a valid one, but in the US... yes, you can hire people online and not report, but if you get caught, it IS illegal. And having tax evasion and fraud on your record definitely isn't going to boost your home business' credibility!