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Vintage
05-03-2001, 08:19 PM
It is very possible my wife will be joining the business this summer. Would it be better to make her a partner or an employee. Considering things such as taxes, and that I work alone now. We would in the future hire workers as the business grew. If I do make her a partner should I wait for the beginning of next year and just have her work the rest of this year off the record.

John Allin
05-03-2001, 08:34 PM
My personal experience is that if you are a sole propietorship and she joins the business, get her business cards and make her "Director of Operations" even if you don't pay her. That way, if something disasterous happens and you get your butt sued off your "joint assets" will still be protected. If she becomes your legal partner your joint assets are at risk.

If you are a corporation already it isn't as much of an issue, however I would suspect that you are not given the nature of the question.

Additionally, if you want to separate her from you in the biz, pay her and do the taxes as you should. However, if you do that you'll need workman's comp, which may not be necessary as a sole prop and the sole worker (some states are different in this respect - that's the way it is in our state).

Also, working with your spouse 24/7 is tough. You better have a danged good strong relationship to make it work. That's my experience anyway.....

The above certainly isn't gospel and you may get alot of good opinions and advice on this forum..... either way you go - good luck.