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Thread: Percentage split in a Husband and Wife Partnership - NON ltd Co

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    Default Percentage split in a Husband and Wife Partnership - NON ltd Co

    Hi, I am a newbie to this web site and sorry if I have messed things up. My wife and I have a BnB and wondered if we can have a partnership changed to 99% in her name and 1% in my name as she has no other income.

    Last year it was 50/50 and did not matter as we made no profit. But this year I have already used up my allowance but my wife has her full personal allowance as she has no other income.

    I appreciate any help, Regards, Trev.
    Last edited by Harold Mansfield; 04-24-2018 at 01:49 PM. Reason: Shouting, all bold text.

  2. #2
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    I'm assuming you're talking about an LLC or other corporate structure. Of course you have change the terms or a partnership. How is dependent on the rules of your state. In my state there is no determination of shares on the LLC it's a private agreement between the parties. Your state is probably different and may have underlying terms of ownership between a married couple that override it in case of divorce.

    Sounds like it would easier to adjust salaries since technically in most states a spouse is 50% owner anyway.

    I'm just spit balling. I'm sure someone who knows more will chime in. It would be helpful to know what state you're in and what your corporate structure is.

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    As Harold said it can be done depending on state laws. It would probably have to be an LLC or corp. My question is , why? I assume it is the same household. Again as Harold said just divvy up the income.

    What do you mean by allowance?

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    Are you in the United States?

    If you are a duly-recognized partnership (registered as such with your state), then presumably you are filing a 1065 partnership tax return with the IRS?

    If your business is not recognized as a formal partnership, then it would most likely be considered a sole-proprietorship in one of your names (but not the other).

    What becomes important then is how you file your individual tax return -- whether Married Filing Jointly, or married filing separately....

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    I just saw the part that said "non ltd". In that case there are no "partnerships" unless you've created a separate agreement. Which again, doesn't make much sense for a non corporate entity of a husband and wife to do. Either create an LLC and state the partnership structure, or just create titles and salaries.

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