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Updated over 2 years ago,
Sole Proprietor or Partnership for a Married Couple?
Hello everyone, my wife and I are just starting out and we were hoping for some guidance on an issue.
Basically we are trying to fill out a W-9 and aren't sure if we should be a "sole proprietor" or a "partnership." My limited understanding is that in a community property state (such as Arizona) a married couple can be considered a sole proprietor. I have been looking for a CPA, but I was hoping for some advice in the meantime.
We first purchased the property in May of 2022. It is a single family home and we are renting out by the bedroom while living in the master bedroom.
The issue is that one of the applicants we received is in a program for human trafficking victims and the first few months of her rent would be paid by a scholarship from a local church. Her background and credit history are all fine and I don't have a problem with any of this. The church has asked that I provide a W-9. I've read some forum posts and learned that this isn't too unusual, but I'm not sure how I should go about filling out Section 3 of the form.
Any help is much appreciated. Also if you know any CPAs that are familiar with the house hacking strategy in the Phoenix area, I would appreciate their contact informaton.