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Dave Kennett
Dave Kennett, Attorney
Category: Business Law
Satisfied Customers: 27689
Experience:  25 years practicing law
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Scenario A family member is set up in a sole proprietorship,

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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: 7 years ago.
Category: Business Law
Expert:  Dave Kennett replied 7 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.


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