Keep everone on 1099 for AS LONG AS POSSIBLE.
This allows you to easily hire/fire folks in nearly any location.
If you hire folks on W2 type wages, you'll have to deal with loads of bullshit introduced by the various state governments. In each state you hire you'll have to make sure your payroll provider can handle it. You may need to add a registered agent (eg: Oregon) You'll hve to register with the SOS and/or the DOR and/or the DOL. Many cases require waiting days for paper-mail with registration numbers, these delays cost you a) time and b) cash. Some cases (CT) you have to wait for the first letter, to then use that ID for the next department, which also waits 10 days. So, now you've added 20+ days of waiting and at least two hours of paperwork for a W2 Employee. It's just not worth it.
Each one requires more and more paperwork you just don't have time for. Each one requires learing some one-off byzantine system. Each one requires recording and tracking some bullshit registration numbers. Each one obligates you to additional monthly, quarterly and/or yearly paperwork. Each one exposes you to risk that if any of those things are not done you'll have penalties. Each one could expose you to nexus in said State which may then also require you to pay some business taxes in said State.
It's such a waste of time and cash.