Father-Son Working Relationship

June --

I just started to work for my dad. He is a self-employed as a steel fabricator. I was wondering what is the proper form needed for me to be an employee that files his own taxes. And later on down the line when I am made a partner, would it be easier to just be a partner now and file as a 1099 or what is the best route to take on this. I hope i explained my question well enough, I'm a little confused and unsure how to go about things.

Thanks.
Shane from Colorado


Hello Shane,

It appears that you are your father's employee. And so you need to contact your local small business association or your state department of labor about what forms need to be filed for both the federal and your state government.

When you and your father decide to form a partnership, then you and he will be a partners. You will not be his employee, nor a self-employed working for him.

If your father has a business he should have a tax professional to whom he can go for a complete explanation of your working relationship. Both you and he can greatly mess up if you don't set up the working relationship properly.

Best, June