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.
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.
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