Incorporation, Employment, S-Corp (Single person owned) newly incorporated.
In the State of California EDD Form D-1, they ask if the S-Corp wish to employ any spouse or other family members.
If I, the single owner, employ my spouse, does it matter to the Government (federal or state)? Will Government treat my s-corp in any different way for tax purpose or otherwise if spouse is employed? Or it makes no difference whether the spouse is employed?
Thanks folks :-)
No there may be tax advantages or tax breaks under the tax code. Make sure your tax man is the best. The firm uses Stennes and Sabath in Campbell Ca. Good luck
I keep seeing this question. If you don't employ a spouse, this could be used against you in that EDD can go in, see spouse doing something and say "where is spouse's employment pay stub".
EDD does this for other businesses in an attempt to stamp out independent contractors.
If the entity makes money, there are advantages to having an employed spouse, such as:
1. Social Security Qualification
2. Retirement Plan eligibility
3. Coverage under the business' commercial liability policy as an employee
Curt Harrington Patent & Tax Law Attorney Certified Tax Specialist by the California Board of Legal Specialization PATENTAX.COM This communication is general information and not legal advice, and does not create an attorney-client relationship. This communication should not be relied upon as any type of legal advice. Please note that no attorney-client relationship exists between the sender and the recipient of this message in the absence of either (1) a signed fee contract and (2) remission of an agreed-upon retainer. Absent such an agreement and retainer, I am not engaged by you as an attorney, nor is any other member of my law firm.
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