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so is your biz in your name or the wifes?

Discussion in 'Business Fundamentals' started by payton, Feb 11, 2007.

  1. payton

    payton Senior Member
    Messages: 470

    ive been seriously thinking bout making the wife the bizz. owner for tax reason's then id take on a vp postion. in charge of everything. theres no worries bout the wife going anywhere. and if i can save some on tax's i see this as a win win situation. any insight b4 i do this/

    payton
     
  2. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Only that your wife will be your boss at home and work!:D :D
     
  3. payton

    payton Senior Member
    Messages: 470


    she isnt now? damn i must be doin summin wrong..
     
  4. Sydenstricker Landscaping

    Sydenstricker Landscaping PlowSite Veteran
    Messages: 3,882

    All me here. I am sure the wife is staying, but you just never know. Plus she only wants to do the office work anyway. That way she gets to deal with bitchy customers,lol:D
     
  5. JRSlawn

    JRSlawn Senior Member
    Messages: 346

    You guys who put your bus in your wifes name are nuts. A buddy of mine thought he was going to get more looks if he had it in his wifes name making it a minority owned business. Well it work good for the first 5 years then she decided she wanted out and took the business now she is running it making money and he is working at a nursery. Can someone say prenup
     
  6. cet

    cet PlowSite Fanatic
    Messages: 7,202

    My wife and I split the business 50/50. I make all the money and she spends all the money. LOL.
     
  7. Bry@n

    Bry@n Senior Member
    Messages: 159

    My wife and I are both members of the corporation. Either way it doesn't matter. She will get half if she wants to leave so why not just make it that way up front.
     
  8. payton

    payton Senior Member
    Messages: 470

    i know she would get half if we split up.. but what im wondering is if the tax deductions is worth the hassle.

    payton
     
  9. All_Clear

    All_Clear Senior Member
    Messages: 206

    My biz is still reg as sole proprietor but i too have thought of having it changed.

    I say it's a personal decision, only you know your situation.


    All Clear
     
  10. carl b

    carl b PlowSite.com Addict
    from Ohio
    Messages: 1,330

    can you say prenup!!!!!!!!!i don't have allot but its mine she gets nothing...ok maybe a small amount of cash:rolleyes:
     
  11. dodgeguy99

    dodgeguy99 Senior Member
    from mn
    Messages: 272

    if you trust your wife put the biz in her name but you have to be 100% sure everything will be fine. because if something happens you will be out of a job and your business
     
  12. All_Clear

    All_Clear Senior Member
    Messages: 206

    Well unless you orig had a prenup, your SOL if your wife leaves you.... she's going to get half, no matter who's name it's in. Thats pretty clear....

    As far as the better tax breaks, i don't really know how much more you might save. I took a quick look but came up with nothing more then what you yourself could claim as deductions.

    All Clear
     
  13. Rcgm

    Rcgm Senior Member
    Messages: 613

    :eek: No it is al in my name.She don't even know how much money I make.LOL
    We have been together for 10 years and married for 1 year.She thinks I make about 20 grand a year and that is fine with me :D She has a really good job and she don't need any of my money.We pay our bills separately we are married but pay our bills like roomates LMAO


    RCGM
    Brad
     
  14. payton

    payton Senior Member
    Messages: 470

    well the wife didnt realize how much i made till we did tax's this year.after we broke 6 digits she looked at me and said where did it all go.. haha

    payton
     
  15. Rcgm

    Rcgm Senior Member
    Messages: 613

    Does anyone ever know where it goes?I sure and the heck don't.


    RCGM
    Brad
     
  16. basher

    basher PlowSite Fanatic
    from 19707
    Messages: 8,992


    How will that help you tax wise?
     
  17. payton

    payton Senior Member
    Messages: 470

    woman biz owner normally get bigger tax deductions
     
  18. Mick

    Mick PlowSite.com Veteran
    from Maine
    Messages: 5,546

    There are no tax advantages that I know of. The advantage is in start-up funding for women-owned or minority-owned businesses.
     
  19. basher

    basher PlowSite Fanatic
    from 19707
    Messages: 8,992

    It could also be an advantage in bidding certain government contracts. Some large contractors advertise for minority owned sub-contractors to meet government requirements for large jobs. Many times the minority contractor doesn't even have to bid the job as the general is required to have a certain % of minority contractors employed on the project.
     
  20. CHPL

    CHPL Member
    Messages: 80

    wife owned business

    The business will still be taxed at the same rate based on income. There is no difference tax wise. There are advantages in certain cases regarding insurance and such. Most of this is for a sole prop or single member LLC. A few examples would be if you want to have, or need to be covered under workmans comp for commercial contracts. Workmans comp is based on payroll your salary or draw and risk for the tasks you perform. So if your wife is the owner and your an employee you can aquire workmans comp on you based on your hourly rate of say $10 an hour. Your wife as the owner waives workmans comp coverage because its optional for the owner to be covered. She can then take draws at a higher income level. The business (wife) can offer a Simple IRA plan were you can have upto $10,000 a year deducted from your pay for the ira and the business can match up to 3% (The 3% is a business expense) The best thing to do is see an Accountant before you do anything so that you can figure out what is best for your situation.