Hello, I am a SMLLC doing consulting work. I am pursuing a contract with a client that is asking for two consultants. Each consultant will be billable to the client at 100/hr. I am one of the consultants and will bring my brother on as the other.

So the client will have and agreement with my LLC for two people and pay the LLC through a 1099 for the combined hours billed by both people. Both of us will be working independently and have different hours billed.

I want to turn around and pay my brother as a 1099 contractor at 100/hr for the hours he billed and not take any cut off of it.

Would 100% of what I "pay" him go as a business expense? I ask because I don't want to take a cut of my brother's billables but I don't want to pay additional taxes because we went through a single LLC.

Alternatively, we could setup two individual agreements with the clients but and be paid on 2 separate 1099's but we prefer to funnel everything through the LLC and take care of our end on our own.