Welcome to City-Data.com Forum!
U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Economics > Business
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Old 09-14-2008, 02:43 PM
1,955 posts, read 5,266,089 times
Reputation: 1124


I am the sole owner of an LLC, and my wife recently began doing occasional work for the business. We are trying to decide if it would be a good idea to pay her as a contractor or as a salaried employee. The work is not really regular, and I don't anticipate it being so for some time.

So, since we file our taxes as married-joint filing, do I need to file a 1099 form with the IRS for my wife's payments?

Does she need to make separate self-employment tax payments?
Reply With Quote Quick reply to this message

Old 09-14-2008, 03:47 PM
3,674 posts, read 8,659,293 times
Reputation: 3086
Contract work is very difficult to prove. You should consult a professional if you're interested in ensuring that her work at your LLC is properly handled to qualify for contractor status.

Just a little warning. The government despises contractors, and there's a list of about 19 requirements to meet. Violating any one of them means she's not a contractor. Good luck
Reply With Quote Quick reply to this message
Old 09-14-2008, 06:48 PM
Location: In my playhouse.
1,047 posts, read 2,784,393 times
Reputation: 1730
I highly recommend you discuss this with your accountant so you can have these issues looked at in a more detailed manner.
Reply With Quote Quick reply to this message
Old 10-06-2008, 11:31 AM
5 posts, read 15,599 times
Reputation: 13
If you are taxed as a Sole Prop of the LLC (if you filed a sch C last year) then you do not need to send her a 1099. The IRS views the 2 of you as one when it comes to taxes. So, the money you pay her is just like the money that you take out of the business for yourself. You are taxes on the profits that the business sees.

If you elected to be taxed as a S-corp thru your LLC, then you will not only have to look at the business but your personal finances as well.

As someone else indicated, it is very difficult to prove Contractor to the IRS in case of audit.
Reply With Quote Quick reply to this message
Old 10-09-2008, 12:44 PM
Location: N GA Mountains
247 posts, read 1,289,506 times
Reputation: 97
Why not just pay her as part time employee?
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.

Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics > Business

All times are GMT -6. The time now is 07:51 PM.

© 2005-2024, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top