Do I pay my wife?

Discussion in 'Lawn Mowing' started by Coumbe, Apr 20, 2008.

  1. Coumbe

    Coumbe LawnSite Senior Member
    Posts: 270

    :usflag:I am a sole proprietor. I have no employees. Except for My wife and Myself. Do I get a paycheck? Do we both get a salary?? What would be a realistic salary for what we do??? All of this is assuming I can afford to pay us.:hammerhead:
     
  2. yungman

    yungman LawnSite Bronze Member
    from Calif.
    Posts: 1,274

    OF course you pay your wife no mater what!!!! You always owe your wife!!!:laughing::laughing::laughing:

    Joking aside. I think you might need to talk to a CPA. This has a lot to do with the tax law and business law. You might have to look into forming a coperation and stuff where you and your wife can be treated as employee and earn salary etc. I study income tax before in college, I learn enough to let an accountant to do my tax and I can look over his shoulder.

    I am not too familar with all this but IT IS VERY IMPORTANT TO TALK TO REAL PROFESSIONAL. This is not the place to ask, this is too serious. You don't do it right, you can really get into trouble. Start with a CPA to learn the advantage and disadvantage on all your option. There are so many things you can do, eg. If your wife is answering your business call at home, you might even able to deduct part of your home as office for business and all the other goodies. You really need to talk to someone on business law and CPA.

    Listen to ideas here and run by the real professional on the advantage and disadvantage of all the option. You have to pay for the consultation, don't be cheap.

    Good luck
     
  3. Coumbe

    Coumbe LawnSite Senior Member
    Posts: 270

    Thanks for your thoughts. Right now she gets no paycheck but she has free reign of the check book!*trucewhiteflag*
     
  4. M&SLawnCare

    M&SLawnCare LawnSite Senior Member
    Posts: 304

    A sole proprietor is exactly how it sounds, one person thats self employed. You'ld have to either become a partnership or incorperate in order to reconise your wife as an employee and pay her.
     
  5. Coumbe

    Coumbe LawnSite Senior Member
    Posts: 270

    That makes sense. I guess I will give her an allowance instead of a paycheck. I guess all of the money I have in the bank at any given time is a fair allowance.:hammerhead:
     
  6. hole in one lco

    hole in one lco LawnSite Bronze Member
    Posts: 1,793

    not so the checks your company gets is the company money not yours.
     
  7. Roger

    Roger LawnSite Fanatic
    Posts: 5,927

    How have you established your business? Are you a sole proprietor, an S-Corp, incorporated, LLC, or what?

    Your question suggests that you don't know. In that case, need to rethink your business model from the top down. As suggested, you need to sit down with your accountant, and get the right business model that works for you and what you intend to do with your business. Are you sure you want to be a business owner?
     
  8. KeystoneLawn&Landscaping

    KeystoneLawn&Landscaping LawnSite Senior Member
    Posts: 774

    A sole proprieter business can hire employees! Sole propritor means there is only one owner, not just one worker.
     
  9. lawnman_scott

    lawnman_scott LawnSite Fanatic
    Posts: 7,547

    It makes no sence to pay her. What happens when you get employees and workmans comp ins? You will need to pay more just to cover her. Maybe you would want it if she is working out in the feild, but mind does paperwork, and it doesnt make sence to give her a paycheck.
     
  10. Texas Mower Parts

    Texas Mower Parts LawnSite Senior Member
    from Texas
    Posts: 472

    Restructure your business with your wife as the owner and then go after some state, city, or county business that try to deal first with minority owned companies.
     

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