Legal Question in Business Law in California

Re: S corporation hiring spouse

Your question is a good one for a tax accountant to answer. Actually, I researched this in some depth a couple of years ago, and don't remember the answer, but I think it was not yet permissible but there was momentum in Congress to making it so. I would suggest asking a tax accountant with small business clients; they stay current on developments in this area. Most lawyers, including business lawyers, don't, unless thet are tax specialists (and most of them deal with tax matters "correctively" after a client gets in trouble with the IRS, rather than preventively.

I'm asking a tax accountant friend and if I get any info I'll do another post.

You might also ask your insurance agent, although their bias is toward selling more insurance rather than on conservatively avoiding tax problems as an accountant would be.