Doing Business Together

Wives and husbands, of course, can do business together. They can be business partners, just as any other two people, whether related or not. They could set up a corporation and both be owners and employees of the corporation; they could form a partnership; or one could own the business and employ the other. Wages and benefits, including health insurance and retirement plans, can be paid, just as they would for any other employee.

If wages and benefits are being paid to a spouse or child, the amount usually should not be more than what is reasonable or fair market value. If artificially high payments are made, the business could get into trouble with the Internal Revenue Service.