How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Dave Kennett Your Own Question
Dave Kennett
Dave Kennett, Attorney
Category: Business Law
Satisfied Customers: 27689
Experience:  25 years practicing law
Type Your Business Law Question Here...
Dave Kennett is online now
A new question is answered every 9 seconds

Scenario A family member is set up in a sole proprietorship,

Resolved Question:

Scenario: A family member is set up in a sole proprietorship, but another family member does the work that earns the income. That income goes straight to the family member that owns the sole proprietorship, therefore the business, and stays there (it is not distributed to the family member that does the work). The family member that owns the sole proprietorship pays the taxes, not the family member that does the work. Is that legal?
Submitted: 6 years ago.
Category: Business Law
Expert:  Dave Kennett replied 6 years ago.

DearCustomer- I have no idea why anyone would want to work for free but if the family member who works without pay wants to volunteer his or her time I see nothing illegal about it. So long as the owner is paying his taxes on the income then there is no violation of the tax laws. If the "free" employee wants to stop all he or she has to do is quit.


Dave Kennett

Dave Kennett and 4 other Business Law Specialists are ready to help you

Related Business Law Questions