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I know you stated that this is your family's business but your husband can report this and request the IRS classify his position.
If the IRS finds him to be an employee the business would have to pay half his SS and Medicare.
Do you think he wants to do this?
If not , you file Schedule C and report his income. He will pay SS and Medicare tax (normally shared with employer) on the income over $400 and income tax on all the profit.
He should receive a 1099MISC from the business showing what he was paid. This amount is his gross to show on the Schedule C
You will see that there is an adjustment for half that SS and Medicare tax (this is the Self Employment tax) on the 1040 form so that amount reduces the taxable income.
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