Hello CPAs, Can a multi-member LLC (taxed as a partnership) pay member's wife through 1099 for her consultant services to business? If not, what is a proper? Thank you.

[SweetieJean]

Has she worked for them in 2016?

[nhpatel251234]

Yes, she has.

[bwa · Accepted solution]

The specific answer to your question is yes, they can, so long as the amount is reasonable for services performed.  The wife needs to receive a Form 1099 (not a K-1, as she's not a partner) and report it as self-employment income.

[nhpatel251234]

Thank you so much