QB Issue Resolution:

Well, this is a QB user forum, not an Employment Law or Entity Formation law forum, but I can address a few issues:

1. That violates the Federal Worker Classification rules. Under your control, with your tools, for your projects, at your convenience = Not Independent at all. That likely violates your Insurance and State employment regulations, as well.

2. Sure.

3. The tax form (you will likely file 1065) relies¬†on the¬†Partnership agreement. If he mostly does the work, you should ask YOUR CPA about “LLC treated as S-Corp” so he gets Payroll for Working, and his share of partnership. You don’t “pay a share” of partnership. That isn’t really worded well.

We don’t know enough, otherwise, to give you further help. There are too many other considerations. Sorry.

Resolution for Issue 'Partnership verses Sole Proprietor' available: Yes (Solved).
Source: Intuit Community forum.

Partnership verses Sole Proprietor: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.

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