1099 or W2? As a growing startup you should know the difference.
Here are some employment attributes to consider.
1. Employer Instructions: does the employer control when, how, and where to work?
2. Training: does the employer provide training?
3. Continuing Relationship: Does the employee have a continuous relationship with the employer?
4. Set Hours: Do the employees follow set hours?
5. Place of Work: Control over the place of work and equipment used
6. Payment: Does the employer control the method of payment and intervals of payment?
7. Availability of Services: Are the employee's services unavailable to the general public?
8. Termination: Can the employee be fired by the employer?
If you need additional clarity you should file a Form SS-8, to get official documentation from the IRS. If you have other concerns about employment law, I would consult with an attorney.
The IRS website also provides a plethora of information as well.
Miscatagorization can lead to penalties and fines.