Yes. My advice is to consult both a business attorney and a tax attorney about this. Your options depend a audacity temp mail origin bit on how the business is organized (corporation, LLC, partnership, etc), how it is treated for federal tax purposes, what kind of product or service your company does, the time frame you think it is likely that the company may be profitable, what your goals are, and what the employee and contractor are willing to accept. In other words, this is not something for which I can give you a stock or canned answer. How you do it will also have significant tax implications. Some of the more tax favorable methods result in some significant non tax limitations, for example. So there are a lot of potential trade offs here that you and your partner will need to consider. Startups need to consult experts if they want to do things right. Sure, it costs you some fees up front now to get that advice. But it could save you many time more than the cost of the fees over the long run, especially if the company does become very successful. So don't be penny-wise and dollar foolish here. You need more than an internet forum can provide on this.
So now denimkaty copies and pastes taxing matters post, but can’t even do that properly. I’m still trying to figure this out:
Your options depend a audacity temp mail origin bit on how the business is organized...
wow, just wow.