Should I Pay My Children From The Business?

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In episode 150 of Financially Simple, Justin looks at how and why you might imply your children in the family business.

If you’re paying your kids pocket money for doing a few household chores, maybe consider hiring them and paying them a salary instead! Justin takes a look at the IRS tax code, and explains how you can employ your children giving them and your business significant benefits.

ARTICLE TRANSCRIPT: https://financiallysimple.com/tax-benfits-hiring-your-child-in-your-business/

TIME INDEX:

00:53 - Should I Pay My Children From The Business?

01:28 - Why You Might Want To Hire Your Children

03:12 - The Strategy

04:22 - What The Internal Revenue Code Says

08:17 - Keeping It All Legitimate

10:42 - Is It Worth It?

14:02 - The Corporation “Problem”, and its Simple Solution

14:52 - The Payroll Tax Workaround For Your Children

16:44 - The Bottom Line

17:29 - Wrap Up

USEFUL LINKS:

Financially Simple

Financially Simple on YouTube

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Financially Simple on Twitter

IRS - Family Help

Refresh Your Wealth Podcast

DISCLAIMER:

The Financially Simple podcast provides information, guidance, and support to Small Businesses in the United States. Host Justin Goodbread is a serial entrepreneur, CFP (Certified Financial Planner), CEPA (Certified Exit Planning Advisor), CVGA (Certified Value Growth Advisor), Investopedia Top 100 advisor, and business strategist with over 20 years of experience. Justin owns Heritage Investors LLC, a registered investment adviser with the State of Tennessee. Heritage Investors only transacts business in states where it is properly registered or is excluded or exempted from registration requirements. This material is for general information only and is not intended to provide specific advice or recommendations for individuals. To determine what is appropriate for you, please consult a qualified professional.

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