Get your taxes done using TurboTax

You need to consult with a tax professional (and most likely) local legal counsel.

 

An LLC defaults to a partnership unless an election to be treated as a corporation is made for federal income tax purposes. If it is in the operating agreement, your wife could receive what is called a "guaranteed payment".

 

For the purposes of this board, you might want to disclose the nature of the business and in which state you reside, among a few other details concerning future plans for the entity.

 

I will page another member for more input, but you should seek this type of advice from a local professional who can evaluate your situation in depth.

 

@Rick19744