We have an extremely good marriage. The business will be an interior design business. My husband will help with administrative duties, as well as, paint rooms and assist with installing pictures. Which business structure would be most beneficial for tax purposes? Maybe we should start off as sole propiertorship than go to LLC partnership? Please advise." Thank you much. in Yahoo! Answers
2007-07-05 01:30:27 · 4 answers · asked by Mikki H 2 in Business & Finance ➔ Small Business
A partnership would make it easier for both of you to be sued.
Neither alternative would help your tax situation.
I do consulting and file my earnings on a Schedule 'C'. You do not need to declare anything else.
Besides the obvious tax and liability questions, consider how it will affect your financing. If you need to loan money to finance this business, would your bank be more likely to loan to you personally or you as a corporation?
2007-07-05 01:40:36 · answer #1 · answered by Menehune 7 · 0⤊ 0⤋
It's a sole proprietorship. It would make no sense for them to be a partnership, because the significant would assume an equal share of the liability of the business (instead of just the husband/wife). Joint ventures are between businesses.
2016-05-18 22:01:06 · answer #2 · answered by ? 3 · 0⤊ 0⤋
I dont know about what would be best for tax purposes but if you have a great marriage then it may be a good thing. Also it may be a bad thing because you & your husband may have disagreements which would not be nice. I would go & see a financial adviser or an accountant & see what options would best suit you. Hope it all goes well & best luck
2007-07-05 01:39:38 · answer #3 · answered by richardwales79 3 · 0⤊ 0⤋
I say do a sole proprietorship at first under either your or his name.
The reason is because if you make a mistake and the market can't sustain your business and you fold, if it goes so far as bankruptcy, or even just to debt, it'll only have to affect one of you, not both.
You can always change it later.
2007-07-05 05:14:39 · answer #4 · answered by Luis 6 · 0⤊ 0⤋
I would talk to your accountant and Incorporate in some way if he agrees
About you two working together:
Distance yourself at work. I know married couples who work together fine. Can he take orders from you? can you take orders from him?
Personally, I wouldnt want to work with my wife. That would mean we would be together, all the time except when I was sleeping. I love her but everyone needs their space.
Try it, we dont know the answer... you do..extra $$ helps
But the $$$ is not worse messing up a good marriage...GL
2007-07-05 01:45:14 · answer #5 · answered by Tom M 2 · 0⤊ 0⤋