All Forum Posts by: Connor ODay

 Hi Hannah, perfect thank you for the advise. She had actually talked starting a Sole Proprietorship and wanted to get more info on that! I am very excited to get the business expense paid by the business instead of through the personal account. 

 Hi Bruce, 

Thank you for your insight. If I am hearing you, there is no middle ground. They either need to be an employee or have their own established business with 2 alternative incomes aside from what I pay, correct? Middle ground being that I can't just pay them from the company to an individual (for the reasons you listed above). My GF has discussed starting an LLC with her mother and offering cleaning/repair/Misc services. If they accomplished this and found 2 incomes plus what I pay them within the year, would this meet what the IRS is seeking?

It sounds like you are well versed in the subject. May I ask, if I put my girlfriend on as a part time employee, is it worth the costs associated OR is it more advantageous for them to start the cleaning company?  Much appreciated!

Hi Wayne, thank you I was unsure if there were penalties if you write out a check to an individual or how that all worked. My girlfriend does a lot of work and she will definitely receive more than the $600. If I am understanding correctly, pay her through the company from here on out, let her know that I will report the income and she will need to plan to have that on her taxes? Is there anything you suggest further on my end that should be done? Appreciate you!

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!