Declaring Self Employed Business Loss & Adding 2nd employee

Feb 02, 2021 Last reply: 5 years ago 1 Replies

I am a self-employed sole proprietor of my own LLC, and file by Schedule-C.



Two part question:


  1. Is it possible to take a Business Loss by declaring my own wages greater than the revenue ?


  1. I know there a complications when going from no employees to having other employees, such as needing to show Workers Compensation Insurance, having a Benefit Plan, etc.. I file a Joint Return with my wife. But if I pay wages to my wife on her work for my LLC, do I need do all those things ? Or are we like the same entity, since we file jointly ?



Thanks!


In article snipped-for-privacy@googlegroups.com you write:

If you are a sole proprietor, you don't pay yourself wages.

If you file jointly, there's no point in paying her wages unless you want to increase her FICA contributions and decrease yours.

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