Hey! KKOS trifecta customer here. Very grateful for your company and invaluable YouTube content.
I own a SMLLC (S Corp) for operations of a mobile car wash business. Looking to pivot to physical car washes (leasing and/or purchasing).
My fiancée wants 49% skin in the game as a passive partner. She has some cash to invest. Should I add her as a member of my LLC (S Corp)? I understand a 1065 partnership may be more proper but the S corp saves way more on FICA. How would you structure this?
Likely you’d want to shift your operations to a partnership with your 51% owned by your S-corp. Passive investor shouldn’t owe FICA so she can own her 49% personally or with a LLC holding company. Not totally sure how a spouse would be treated, though. Perhaps would still owe FICA. Maybe best would be to just have some kind of prenup saying she gets 49% of your business if she contributes $x to a joint bank account before the wedding date to be contributed to the business. Probably want to contact the office to actually execute this properly.