Hey Everyone, I just started up a business with a friend of mine doing some consulting work. For ease of bookkeeping, we registered the business as a sole proprietorship under my name. We really don't make enough income to justify the headaches of a payroll, employee taxes, employee insurance, or anything of the sort - maybe an extra $5000/each per year. How should I handle taxes on that? Can I (as far as book keeping goes) consider him a contractor for the company even though we're 50/50 on income? If we both note our additional income during tax time, will we be clear if we're audited? What do you guys suggest? Also, as another small question, is it bad business practice to just keep a single document (ledger) for my business expenses/income? Since we typically only have 1 or 2 jobs per month, can I just use an Access template and record my income/expenses in one document? Or do I really need to keep separate journals for everything? Thanks for any help!