How will marriage affect taxes?

[CJane]

What is the name of your state? MO

My boyfriend is considering hiring me to manage his business. We're both curious what, if any tax benefit/penalty there would be to his business if we were to marry.

He's a sole proprietorship, as far as I know. I would be an actual employee, receiving a salary.

Marriage is a long time off yet, we're just curious at this point if it would be detrimental to the business if we made everything all legal like.

[LdiJ]

Originally Posted by CJane

What is the name of your state? MO

My boyfriend is considering hiring me to manage his business. We're both curious what, if any tax benefit/penalty there would be to his business if we were to marry.

He's a sole proprietorship, as far as I know. I would be an actual employee, receiving a salary.

Marriage is a long time off yet, we're just curious at this point if it would be detrimental to the business if we made everything all legal like.

It would in no way harm the business, as long as you are properly treated as an employee with proper withholding of all taxes and proper employer taxes paid. If he has not had employees in the past, it would be wise to use a payroll service to handle that. Its a lot more efficient and the cost is minimal.

However, it also can be problematic to work for someone with whom you have a relationship. If the relationship goes sour, you could suddenly be out of a job. So think that part through carefully.