I’m looking for some guidance from some of the tax astute people on this board…here’s the story.
I am self-employed in a non real estate business as a sole-proprietor. I have no employees, and I pay for my family’s health insurance.
My wife and I formed an LLC last year for real estate investing, taxed as a partnership. We are the only 2 partners. Due to financing and some health related issues, we’ve since had no buy or sell activity or LLC income. She now has the opportunity to do office work for the realtor that we used. He is looking for a non-employee type situation.
From a tax standpoint should we:
Have her work as an independent contractor, receiving a 1099 from the realtor?
Have her work from within our LLC as an independent contractor, with our LLC billing the realtor office and she then receiving a 1099 from our LLC?
Have her work as a hourly employee on the payroll of our LLC?
Something else?
It’s my understanding that as an employee, the LLC could provide her with family health insurance coverage as a benefit and save on FICA taxes, but I don’t know if there is enough money in this employment situation to provide that coverage along with a hourly wage.
Thanks in advance for any guidance here!