Carl
Level 15

Business & farm

No you can't. Understand also that in a partnership, an owner/partner can not be an employee either. So either they're a partner, or they're an employee. But they can't be both. If this partnership only has two partners and you decide to make one of the two partners an employee, then you no longer have a partnership. The partnership would either have to acquire a new partner, or it would have to be dissolved and closed, and a completely new single-member LLC created, established and registered.

If your state taxes personal income, then this process is double the work.