There are advantages to having an LLC (like being personally protected from most potential business-related liability and obligations), but it is not strictly required: you can just receive for yourself and issue to your workers the forms 1099.HOWEVER, your workers probably are not contractors and actually need to receive a W-2 (and have you pay the employer share of social security and medicaid taxes, plus withhold from them); you also most likely have to pay overtime if they work more than 40 hours per week. For detailed information about when someone is a contractor (1099) vs. employee (W2), go to the U.S. Dept. of Labor's and the IRS's websites and look up "independent contractor." The short answer is, if you set their hours, tell them where to go/work, and can tell them how to do their jobs (i.e. manage how they do their jobs), and in particular if they only work for you and do not have other clients whom they provide services for, they are almost certainly employees, not contractors. If you treat employees as contractors when they are not, you can face legal liability, so you need to make sure you are treating and paying them properly.