Construction LLC 1099 employee

[Matthew Scott]

I have organized the rehab of two properties myself and plan to continue more in the future. I have also picked up a lot of side work with other property managers to keep money coming in. I decided to legitimize this money by creating an LLC. I figure this will help me keep my own rehabs organized while also showing a stream of income for the handyman work that I do. If anyone has started something similar and has any tips or questions for me I would love to talk.

My main question that I am looking to get answered right now is how to handle my 1099 employee. He is a friend of mine that has been helping me with projects for a few years now. In the past I have paid him cash but now that I am running things through an LLC I believe I need to pay him as a 1099 employee. Is this the best way to do it or should I try to get him listed as a full time employee with an hourly wage. How will this effect any type of insurance I will need for my company?