Hello! I am a CPA here to assist you with your tax questions. My goal is to provide you with excellent service today.
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Making your husband a joint owner on business accounts will not create a tax liability
You are free to add him to the business accounts, and so long as he's not an owner of the business then you do not have to worry about being classified as a partnership or anything.
It's common for businesses to have signers on account that are not owner.
So what is the difference between being the business owner and an account owner?
Well, if you are a business owner you have an ownership interest in the actual business. AN authorized signer is just someone who can write checks and bank on behalf of the company ... but isn't an owner
How does the IRS distinguish? Is it that I have the EIN number that is tied to my SSN? (Although I file a schedule C with my SSN).
Just because you are a signer on account doesn't make you an owner
The IRS distinguishes based on the type of return that you file. If you file a schedule C you are a sole proprietor
OK. So if I file a schedule C and tell them that I have been conducting business but Brian hasn't, they accept that.
Yes, that is correct.
OK got it. But because we are married, he is still jointly liable for my business debts since I am not incorporated, right?
Not unless he cosigns for the debt
You aren't personally liable for your spouses debts
Wow, really? Even in a community property state?
Oh, not in a community property state
Community property states are different. I didn't catch you were in Washington until now, sorry about that
No worries. Just checking. I have malpractice insurance and I don't plan on making any major investments, so i dont think he has much to sweat.
Thank you! That answers my questions.
Glad I could help.
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