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How Do I handle Taxes w/ a Joint Venture??

Discussion in 'Business & Tax Advice' started by rinksrat, Oct 12, 2011.

  1. rinksrat

    rinksrat Registered Member

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    Occupation:
    engineering
    Location:
    Portland OR
    So I have been working together as a Joint Venture and were starting to make some decent money.

    I am lending out my affiliate account while he is driving traffic to it. We are consistently making a min of $1500 a month on my account.

    I am sending him 60% while I keep 40% of $1500 every month.

    What is the best way to handle taxes in this situation? I dont want to get screwed.
     
  2. StartupBros

    StartupBros Regular Member

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    Just pay him as a contractor (1099)
     
  3. jonnyquest

    jonnyquest Regular Member

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    hmm...the issue is you will get a 1099 from whomever...treat him as an independent contractor and as a business expense...issue him a 1099 for the amount of funds you paid him. Now you have notified the IRS and shifted the tax burden to him...he can write off any expenses he had..etc

    Check with a local tax expert ...but that is the way I would do it

    JQ

    [​IMG]
     
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