LLC How to pay someone for work that is not a contractor/employee

[Connor ODay]

Hello Everyone, 

First post here on bigger pockets! Any advice is much appreciated. 

Little backstory: I bought two 4-plexes at the end of last year. Way in over my head. My girlfriend and son have been helping with all the maintenance, rehab, and other tasks. One property went into an LLC (the one that is currently making money). When I pay my GF/son I have been doing this out of my personal account, unrelated to the LLC. I have been researching and can't come to a clear conclusion on how to pay for their help via the LLC account.

The details I have found so far is I can put them on as employees (which I am also not sure how to legally do) BUT you have pay all the taxes and jump through the government hoops. The alternative is to pay them as contractors. They don't have their own business and to my comprehension this far, it is not as simple as just writing the individual a check from the business. 

I hope that somewhat makes sense. Essentially the help I receive is part time. Do I find a way to put them on as part time employees? Can I just write them a check from the business? Do they need to have there own Business/company/LLC to make this all come together?

Thank you so much!

[Wayne Brooks]

@Connor ODay Yes, you can simply write them checks from your llc.  They don’t have to be “set up as a business”, at all.  They report the income on their tax returns, you need to issue them a 1099 if you pay anyone more than $600 (you can download them from the internet or get them at an office supply store) by January 31 of the following year.