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I have one more question regarding the above situation. What would be the best way to pay the owner of the welding business? As an employee with all the usual taxes taken out; or just a set monthly draw that will give him a 1099 at the end of the year? He has no other people working for him; it's all his business and has no sub-contractors. Remember we are looking for the best tax advantage when him and his wife file their tax return for this year.
Please let me know!