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brownbag
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Paul – FS Concierge, post: 267938, member: 78928 wrote:
You might need to clarify your post.

Do you mean you would like to take equity in the business in Lieu of payment?

I am assuming you would create a new entity (Company/trust/partnership) for the software sales is that correct?

BTW, that may mean your wife would need to sell the software or code or license same to the new entity.

Just some things to think about.

I don’t really want to take equity in the business. I just know that I may make some money from the software but want to know who legally can declare the money as income.
Option 1: It is my wife’s income as she owns the software (it was built for her shop) and I’m nice enough to do all this work for her in my spare time ( :) ).
Option 2: Me, as I’m doing the work and I’m legally required to declare the income in my name.

The software has no business entity and no structure at the moment, so we can go either way. Option 1 is probably better but not not be compliant with tax rules – I just don’t know.

In terms of creating a new entiry, yes, probably eventually but for now, while we don’t know if it will gain any traction, that seems unnecessary. I’d want to know if I’ll make any money from it (at least two customers) before I go into the effort of getting a company/trust structure.

My wife selling the software or code is not really an issue – I’m sure she’s allowed to sell it for 1 cent.