[Angel Cleaning]

I started a commercial cleaning business and have a friend that has a lot of knowledge and contacts with people that could use cleaning services and is a hard worker. He is not my partner, but has been with me since the beginning in discussions of who to market and he even purchased business cards with my business name on them and was thinking of having him be a manager at some point or having him start his own business and being a Subcontractor. It is my business and I have done all of the contracts and research to get it up and running. We discussed him setting up his own business and him being a "Subcontractor", but are not jumping into that until we find clients and know if business will be coming in. If he is not a Partner or a Subcontractor yet, what is the best way to pay him if he lands a job and finds the people to work it? We are planning on discussing this week and I want to know what I am talking about before going into the meeting. First discussion involved him getting the job and running it and me getting a percentage of maybe 25% to 30% of the contract. I am paying insurance and supplying the cleaning products for the job. So if he gets a project paying $2,000, I will get $500 without doing any work. Can he be a Subcontractor without having a business set up and how should I change the payment once he is a Subcontractor if we don't put him on as an employee later?