Wife Owns SMLLC and hired Husband to do the work; can she give him a 1099?
The spouse is the owner of the SMLLC and does all the administrative stuff
The husband does all the work among other workers
The reason why she owns the business is because she has the license and he doesn't have one.
They live in MD which is not a community property State
Can the wife/LLC give the husband along with the others workers a 1099 to avoid forming a partnership and file form 1065?
I have advice them to form a partnership and file 1065, but they wanted to know if the wife can just provide a 1099 to the husband without creating any issues with the IRS.
I know this is possible, but don't know if this will raise any flags with the IRS.
They are going to form a partnership this year 2013, but for 2012 I wonder if giving the husband a 1099 would be reasonable to do.