legal, partnershipI recently started an LLP with a friend. We provide social services to disabled adults through state agencies. My partner and I have a combined 23 years of experience as independent contractors in this field. Under our company, we are hiring employees to work with clients. The division of work between us is that he handles supervision and marketing. I handle accounting, HR, and IT. We both handle billing and collections.
So far, the monetary investment has been the same but the workload has been about 95/5 percent in my favor. He’s forgetful and too busy. I’m mostly doing both our jobs.
Now, he’s starting to work with one of the clients of our business that he had previously as an independent contractor. He’s asking me to pay him wages for that time. He figures that because the state pays us hourly for direct client work, it should be no problem to pay him hourly.
Apart from the “no” I’m going to give him, what are the legalities and/or accounting issues of an arrangement where one of the partners receives hourly wages for certain work?
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