From Solo to Studio: How to Manage Subcontractors with Bonsai
The hardest phase of a creative business isn't starting; it’s scaling.
There comes a tipping point where you have too much work to do yourself, but not enough consistent revenue to hire a full-time employee. The solution is hiring subcontractors to help execute projects.
However, most creators manage this transition poorly. They use WhatsApp for communication, Google Drive for files, and Venmo for payments. It’s a disorganized mess that looks unprofessional to clients and creates a tax nightmare for you.
To scale like a legitimate agency in 2026, you need a centralized operating system. Here is how to use Bonsai to manage your subcontractors without drowning in admin.
1. Professional Onboarding (The IP Trap)
The biggest mistake new agency owners make is failing to sign a contract with their subcontractor. If a freelancer edits a video for you without a contract, they technically own the copyright to that edit, not you (or your client).
How Bonsai Solves It: Bonsai offers dedicated Subcontractor Agreements templates.
IP Protection: These contracts are pre-written to ensure "Work for Hire" status, meaning intellectual property automatically transfers to you upon payment.
NDAs: You can include Non-Disclosure clauses to ensure your subcontractor doesn't leak your client’s unreleased product launch.
The Workflow: You send the contract via Bonsai just like you would to a client. The subcontractor signs digitally, and it’s stored in the project folder forever.
2. Project Management (Without the "Middleman" Stress)
When you run an agency, you are the middleman. You need to pass information from the client to the subcontractor without giving the subcontractor full access to your business data (or your client's billing info).
How Bonsai Solves It: Bonsai allows you to invite collaborators to specific projects with limited permissions.
Task Assignment: You can assign specific tasks to your subcontractor within the project dashboard.
Time Tracking: Your subcontractor can track their time directly inside your Bonsai project.
The Benefit: You see exactly how many hours they have burned on the project in real-time, so you don't get a surprise invoice for 50 hours when you budgeted for 10.
3. Seamless Payouts (The "One-Click" Method)
Paying subcontractors is usually a friction point. You have to wait for their invoice, log into your bank, and send a transfer.
How Bonsai Solves It: If you use Bonsai Cash (their business banking account), the integration is seamless.
Invoice to Payout: When your subcontractor tracks their time in Bonsai, they can generate an invoice sent to you.
Automation: You can approve the invoice and pay it directly from your Bonsai balance.
Client Alignment: Ideally, you can structure it so you pay your subcontractor only after your client pays you, keeping your cash flow positive.
4. The Tax Shield: W-9s and 1099s
This is the boring part that bankrupts agencies. If you pay a subcontractor more than $600 in a year, you generally must file a 1099-NEC form with the IRS. If you forget to collect their W-9 form (with their Tax ID) upfront, chasing them down in January is a nightmare.
How Bonsai Solves It:
Automated Collection: Bonsai can automate the collection of W-9 forms during the onboarding process.
Expense Categorization: Because the payout happens inside the ecosystem, Bonsai automatically tags that money as contractor expense rather than generic spending, making your tax filing effortless.
ScaleUp Tip
Using a tool like Bonsai for subcontractors changes your mindset. You stop viewing yourself as a swamped freelancer and start viewing yourself as a business owner.
You aren't just dumping work on a friend; you are issuing a contract, assigning a task, and processing a payout. That structure gives you the confidence to pitch bigger clients and charge Agency Rates.
