It depends. How you prepare your taxes for the business will result in how you organize the structure of the business.
- If you organize as a sole proprietor or single-member LLC, then your business activity will flow into Schedule C of your personal income tax return.
- If the business is a partnership, multi-member LLC, or S Corporation, then a separate tax return is created for the business and the net profits will flow into your personal return on a K-1 form.
The money you put into the business will be offset by bills that you pay or supplies that you buy. So any money you put in will be accounted for with expenses.
For your teaching job, you will include that income on your personal return as you have done in the past.
Regarding the question about a salary, it will depend upon the business entity you choose. If you select the Schedule C option, you should not take a salary.
I recommend consulting a legal profession to determine what business entity type to use for your family business.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
