I have formed an LLC and we are in the startup stage with a business loan.

I own 52% and each of my daughters own 24%.

To get this off the ground , one daughter is asking if it’s possible to provide her a salary for a certain number of hours per week so she can focus on this opportunity more, instead of taking another job.

I understand owners can’t be W2 salaried employees, unless we move our taxation status to be taxed as a corporation. We currently don’t have a revenue stream but that should start soon.

Is it possible to hire her as a contractor, or her partner as the contractor (he will do some work for us as well)

Thanks for any feedback.