Husband and Wife Home Business

by Linda

My husband and I are building a home based business together.

Some income coming in is in his name and some is in my name. For example ... from various affiliate programs.

Are we considered a partnership and if so, do we need to register as a partnership? Or do we file separate income tax returns. What's the best way to handle this?


Thanks,

Linda

Without doing any research on the topic, my preference is to either:

(1) run two separate sole proprietorships making it okay to have revenue coming in under an individual's name; or

(2) do business (receive income) under the entity's (partnership) name.

You need to decide what your business structure is prior to doing your books and before you register the business(es) with your province.

I've put this in the Unanswered Bookkeeping Questions where maybe other bookkeepers will weigh in with their opinion.





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