How to I pay spouse and daughter in my Sole Prop?

DWQA QuestionsCategory: CaliforniaHow to I pay spouse and daughter in my Sole Prop?
Jeffery Hall asked 3 weeks ago

Hi Mark & Matt,
I just finished listening to all the Directed IRA podcasts, took about 6 months. Now I just started listening to Main Street, seems like that will take years to complete so I started at beginning of 2022 season. From your advice I’ve set up a Sole Proprietorship with KKOS Lawyers and the Solo 401k. I had to rush to get it all done in a very tight window of about two weeks, as a unique opportunity arose at work where I could get my 401k out in that time.
I have regular accounts under the Sole Prop and Solo(k) accounts for my spouse and daughter setup at Titan bank as well. My daughter just changed jobs and will move her old 401k to the Solo(k) and my wife has money to move into hers. [We all have Roth IRAs to move to Directed later as well, but that wasn’t urgent like my 401(k).] move.
I drive for Uber on the side for no other reason besides it allowing me to set up the Sole Prop and Solo(k). I have my wife doing the taxes/accounting, and my daughter does all the car detailing, stocking etc. In all the shows I’ve listened to you’ve never mentioned how do I pay my spouse and daughter. My Uber money goes directly into the Sole Prop acct. Do I just transfer money into each of their Sole Prop accounts, do I need to issue 1099’s. I just want to make sure I am showing their being paid in the Sole Prop to “justify” their Solo(k) accounts.