For any new service provider you want to work with (i.e. employee or contractor), the big question to understand is whether that service provider is "classified" as an employee or an independent contract. An W-2 employee generally means you must withhold payroll tax, take liability for certain actions, offer certain benefits, and more. A 1099 contractor generally pays their own tax obligations, and are not owed benefits.
While it is generally less friction for your company if you can classify a service provider as a contractor, this is not necessarily a choice you make—each governing jurisdiction (federal / state) generally has its own set of rules to govern this decision, and their analysis of these facts might be triggered by an IRS audit, a service provider complaint, or a number of other reasons. In turn, the analysis will generally depend on certain factors around how much control is exercised by you over such service provider. Some further guidance from Gusto. Use the forms on Cooley Go for each of those roles.
For Employees
Note also that different states have different rules around Non-Competes and other provisions. Strong "severability" language helps, but if you don't want to research that, you might err on the side of striking non-competes.
Note also that worker's compensation insurance is generally required for employee hires, no matter the size, and that as your company grows, you will meet additional requirements for benefits to offer, from healthcare, to sick & parental leave, and more.
Further, note that different states have different rules around required benefits and disclosures on hiring. Tools like Gusto will help with this. In any case, you must register for a Federal Employer Identification Number (FEIN) if you are to begin hiring employers.
Improperly classifying a service provider as a contractor when they should be an employee can result in backpay obligations and other government fines and penalties.