i live in Indiana. Nine months ago I purchased a business with the help of a another person. The person at the time helped with the down payment and has continued working in the business doing repairs. Now the other person wants their investment back and only wants to be classified for tax purposes as an employee. In all essense I will and have been a self proprietor. The other person was paid wages for their work. At the time of purchase both names were put on the loan and now I am refinancing so it will only be in my name. When I file taxes can I file them as a self proprietor showing the other person as an employee of mine? All they did was help me get started. I know that they have to show their money as an investment. That part they will take care of. In a way I guess it was like a loan and then they cosigned to help?