As an unincorporated one-person operation, you are almost unregulated. So you do your marketing, you've got a great product, the orders start pouring in and you can't handle the work. You need help.
If at all possible, it will be to your advantage to postpone becoming an employer and start by hiring contract workers. Your savings on the cost of unemployment insurance, pensions, medical benefits and worker's compensation will probably go towards higher hourly rates but, more important, you won't have to worry about administering this mess. To see how such dastardly exploitation of the workers is playing out in the high tech industry, look here.
So you decide to go the contract workers route and hire some. In a free enterprise system you could find a suitable candidate and negotiate a contract to say that he would come in to your office, work under your supervision and be paid so much per week. But, in most jurisdictions in North America, such a worker would automatically be classified as an employee. For an example of such regulations, look here. This document will allow you to tailor your contracts so that you will not suddenly become an employer with unexpected liabilities.
Of course, as far as free enterprise is concerned, as soon as you leave your individual freedom niche of unincorporated one-person operation, you can forget it.
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