Authorizing family to purchase supplies for my sole-proprietorship


4

I've registered myself as a sole-proprietor business in Ontario, Canada.

My common-law partner often helps me with organization and other tasks. I want her to be legally able to purchase supplies with her own credit card, debit, or cash. And still be able to write them off as expenses.

Is this allowable by default or is there some sort of process for authorizing a family member to represent the business?

Tax Canada Business Family Sole Proprietorship

asked Nov 17 '11 at 05:03
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Philip K
166 points
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1 Answer


2

There is no process for explicitly authorizing this, besides legally classifying her as an employee or business partner. That said, it looks like you don't have to.

http://www.inc.com/articles/1999/10/14677.html :

For tax purposes, your spouse is allowed to work for your sole proprietorship without being classified as an employee or as a business partner.

Related: http://www.nolo.com/legal-encyclopedia/question-sole-proprietorship-spouse-28208.html
answered Jan 24 '12 at 10:15
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Sean Moubry
208 points
  • Good references. But it's worth noting that the OP is located in Canada, and this answer applies to US law. – Zuly Gonzalez 8 years ago

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Tax Canada Business Family Sole Proprietorship