Great educational video. I was told by my accountant to pay my children for work 25 years ago when I had my business. We took the children’s pay and maxed out a Roth for them along with a individual IRA. They are now in there 40’s and have seen the power of compound interest which has inspired them to continue adding to these accounts. That has been the best financial education tool that I was lucky to have been exposed to. Thank you for your expertise.
Wow, I can't explain how helpful you are! I love how easy you are to understand and how you get right to the point instead of wasting time I don't have much of! So glad I found your videos. Thank you for what you do!
Thanks for the info but I knew there was a connection between you and Karla. All this time like there's no way there can't be. Much love to your Mom as well🙏🏼
the "things to watch out for" section needs to be sent to a few of our politicians. Not mentioning any names, but dummy companies in the names of family members who do nothing with the company...
This is Awesome information you are the answer to my prayers, Thank you Jesus. I’m going to be checking more of your videos out and spread this beneficial information.
Check out the whole “15 minute video entirely both answers are in the video, I asked the same question about hiring a child a certain age but as I finished the video, I got the information I needed.
Have the management company invoice the s-corp, the s corp pays the invoice. The s corp will also issue the LLC a 1099 for amounts paid. The LLC includes the amount as income, but in this example one of the expenses is the children on payroll which lowers the taxable income of the LLC management company
Thank you for the amazing video, you did make lot of things clear. Just one question. In an S-corp situation, What services the LLC(management company) should do for the money it received? What should they manage for s-corp?
What about on camera talent? I’m thinking about creating an art RU-vid channel in which my kids of 5 and 8 help teach other kids draw. Could I pay them in a similar fashion?
Thanks for your helpful videos my brother. Hopefully I can get a question in... can I pay my children with a personal bank check or does it have to be business bank check? Why is cash not permissable by the way paying children? God bless!
MY husband had a W2 income ~91k till August. A on going 1099, close to 100k. New vendor (same 1099 assignment) he plans to work with starting in October has two options either C2C (no 1099) or W2. Should he create a LLC/Scorp this late in the year considering two form of insurance will cost approximately $1200 and other costs you have mentioned in this video? He plans to use the the S-Corp in 2025.
I own single owner LLC. And I want to pay my 7 year old kid for helping me cleaning up. Let say they will make 14K and it is below the standard deduction. Do I need to write my Kid 1099 at the end of tax year to be able to write off my LLC income ?
My daughter is 10 and she works in my business I was told by a tax professional that if I do not provide a w2 or 1099 then at the end of the year write it off as a business expense and to put “outside labor”. However, I do keep a paper trail in the event of an audit. She clocked in and out on a timesheet and I created her a duties and responsibilities sheet so if they ask what she was doing they will have it in writing. I hope this helps but maybe KARLTON has better answer than I was provided.
I am a sole proprietorship and my son is 20 and helps me with computer design and technology stuff how can I file or how much to pay him Thanks in advance
In regards to age you can go younger than 14 or 15. Perfect example of this is the gerber baby or babies on diaper boxes. They are being compensated for their work right? 😉
May I ask why you need to put your child(under 16) in payroll if they are not subject payroll tax and if he/she put exempt in the W4? and the total payment under standard deduction?
Is it true that 1099 independent contractor was made illegal after March 11th of this year? I saw a video on RU-vid saying that a new law said that. And that gig work done via 1099 Independent Contractor tax status is no longer an option after that date. Instead independent contractors will have to file a form 1040c. Is this true?
Can I hire my 5y/o as an independent contractor (using his face as marketing for my party supply business) and pay him $1k/month for “modeling” for my business?
Hmm from what I read it showed this? For the most part, federal child labor laws do not apply if you employ your own child. However, you may be impacted by state child labor laws. When federal and state employment law conflicts, the most restrictive law or the one that offers the most benefit for those it was designed to protect should be followed. Child Labor Laws in the State of Florida Children under 14: While children under the age of 14 are generally not legally employable in the state of Florida, minors who work for their parents (in occupations not declared hazardous) are deemed exemptions to this restriction. Which stays that they can be younger than 14 years old to still be able to take advantage of the write off? Is that info incorrect?
As long as it's a business owned entirely by the parent then yes, 8 years old is all good, younger as well... What they are paid to do is a different topic, but as long as it's your business fully and they aren't doing prohibited activities you're good to go 💪🏿
If your child is over 21 you can hire them as an independent contractor, there are some rules as to what you can and can't have control over, but that will allow you to give them a 1099 , it's an expense for you, you don't have to withhold tax. They are responsible for paying tax on their end, but they can write off expenses against that income... They'll be a sole proprietorship and they can use tax strategy to lower their tax bill as well 💪🏿
I have 3 kids 6, 2, and 6 months old. I try to build youtube channel for them and they are the main characters on the channel can i still put them on the payroll?
I am a sole proprietorship and my son is 20 and helps me with computer design and technology stuff how can I file or how much to pay him Thanks in advance
