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Richard - Bizlaw
Richard - Bizlaw, Attorney
Category: Business Law
Satisfied Customers: 8724
Experience:  30 years of corporate, litigation and international law
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I will be hiring an aid to care for my disabled sister and

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I will be hiring an aid to care for my disabled sister and plan on establishing a sole proprietership, get a seperate tax id, get workers comp insurance, have an umbrella liability insurance, use a payroll company to pay wages. All expenses are reimbursed by a trust set up for her care. Should i establish an LLC, what other considerations are there?
Submitted: 3 years ago.
Category: Business Law
Expert:  Richard - Bizlaw replied 3 years ago.
What is the purpose of the sole proprietorship? What business will it be engaged in?
Customer: replied 3 years ago.
the trustee says he can not employ or pay the caregiver so the sole purpose of the sole proprietorship is to employ/pay the caregiver. the caregivers pay, any required insurance, expenses, etc will be funded by the trust and paid out by the sole proprietorship. The will be an employment contract with thecaregiver that I have had reviewed by a labor attorney. My insurance guy has reviewed it from an insurance perspective. There will not be any earnings it seems it is a simple pass through of expenses.
Expert:  Richard - Bizlaw replied 3 years ago.

The concern I have is that you will not be able to deduct these payments because there is no business and the expenses are incurred for care giving in the sense of taking care of daily living needs such as washing, house keeping, etc.

 

Since that is not a concern, you can do it as a sole proprietorship with a separate tax ID number. That will avoid the cost of an LLC or S Corp.

 

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Richard - Bizlaw, Attorney
Category: Business Law
Satisfied Customers: 8724
Experience: 30 years of corporate, litigation and international law
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