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Hi from Just Answer.
The best entity to use is an LLC or S corporation. I prefer S corporation, but the entities are pretty similar for these purposes.
You need a separate entity so that the two of you who need paycheck stubs can get them.
As the business operates, you could have a separate account under the business name that is exclusively yours. Your brother and father will have to have similar accounts, and take out similar money each year (there are special rules regarding paying one S corp shareholder more in distributions than others(that's called disproportionate distributions).
The S corp can be formed very quickly, and a number of online services offer this service if you don't want to have an attorney create the corporation for you. I can't recommend any from Just Answer, but names like LegalZ*** and others will come up if you google incorporation services.
Thanks for asking at Just Answer. Ask any follow up you may have, or leave positive feedback to close out your question. I'm PDtax.
What do you mean by separate entities? Also, after forming an llc or s corp do we need to file any additional paperwork before printing paycheck stubs?
no. either the llc or s corp will be the separate entity you need to produce payroll checks and stubs. Call it Jones Home Improvement, LLC or Johnson Remodelers, Inc. as a separate entity. That way, your pay stub comes from a separate entity. sorry for the confusion.
I see you're in chat now. How else can I assist?
Please advise if you need anything else.
Ok, once we set up an LLC and get a business account, what do we have to do before we get paycheck stubs?
When you set up the LLC and get a federal ID number from IRS (you can do it online, http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/How-to-Apply-for-an-EIN is the link), you can take the LLC book to the bank with your ID number and set up banking. Then you can start writing payroll checks.
Thanks again from Just Answer.
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