Placing Your Children on Payroll in an LLC (2024)
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- Опубліковано 29 чер 2024
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Chapters:
0:00 Intro
1:03 Why Add Your Children to Payroll?
3:40 Example: Hiring Your 16-Year-Old Son
4:45 What About S Corps?
6:50 The Fair Labor Standards Act
8:29 Hiring Children Over 21
11:04 Downsides of Adding Your Children as LLC Members
11:37 Things to Watch Out For
13:59 The Maximum You Can Pay Your Children (Without Paying Taxes)
14:45 Outro
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Many business owners who have children think about adding their children to their LLCs. However, a lot of these business owners have questions about when they should do this, how they should do this, and whether or not it is even a good idea to add their children to their LLCs in the first place.
In this video, tax expert Karlton Dennis answers all of these questions and provides additional information about hiring your children as employees in your LLC. For example, he discusses the laws around this topic, the tax advantages of adding your children as employees in your business, and more.
In addition to explaining the best hiring practices for children under 18, Karlton also provides insights into hiring adult children. After all, many business owners are also interested in hiring their children after they turn 18. So, if you are a business owner who is thinking about hiring your children, this is a very good video for you to watch.
*Disclaimer: I am not a financial advisor nor am I an attorney. This information is for entertainment purposes only. It is highly recommended that you speak with a tax professional or tax attorney before performing any of the strategies mentioned in this video. Thank you.
#childrenonpayroll #taxsavings
![So You’re an S-Corp...Now What? [Essential Tax Tutorial]](http://i.ytimg.com/vi/x-fhR6kSTa0/mqdefault.jpg)
![So You’re an S-Corp...Now What? [Essential Tax Tutorial]](/img/tr.png)
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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!
BIG THANKS for This! 🙌🏽🧡👏🏼
Very comprehensive discussion of the topic. Thanks
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.
You are THE MAN!!! 💪🏾💪🏾
Very insightful, thank you.
Wow, Really great video. So helpful and easy to follow.
Thank you for this video. I've learn so much.
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Thank you for this info. Very helpful
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🙏🏼
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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...
Freaking love this! Ty
great details
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?
good on my LLC ,BUSINESS EXPENSES I CAN PUT the deduction
Can I hire a newborn? Also, can you talk about paying them as a llc owner?
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.
Does this apply to grand children who are out of school for the summer or holidays. My grandson helps on my farm quite often.
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!
So will the 43k be deducted from the s-corp as business expense? Also can we adjust previous years?
For multiple LLC Can I write off tax reduction for the same computer, desktop, internet, car and office space etc for all LLC
What is the correct way to transfer the money from the S-Corp to Management LLC?
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
What about on camera talent? I’m thinking about creating an art UA-cam channel in which my kids of 5 and 8 help teach other kids draw.
Could I pay them in a similar fashion?
Do you have recommendations for great accounting and tax advisor firms that are smaller and fairly priced for small businesses?
Is it true that 1099 independent contractor was made illegal after March 11th of this year? I saw a video on UA-cam 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?
does this fica exemption for children still apply for an LLC that is wholly owned by a single member parent but manager managed by a holding c-corp?
if they stay under the federal standard deduction, they don't pay personal income tax but how about state income tax like in California?
Does my minor have to file taxes if getting paid less than standard deduction?
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?
What about if my business is an s-corp corporation? Can I still do this?
Isn’t the standard deduction less for children that are claim as your dependent?
Heading to the border to get me some! Adoption takes too long. 😂
if we pay kids below 18 salary. I heard they don't get scholarships or financial aid for college admissions.
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? 😉
Thanks 😊
Does this apply in UK?
What about hire my grandson to do my yard work,for my business
How does this work with child support?
Can we hire our Grand children??
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?
So what’s the minimum age limit? 1yrd
@victorstone3329 from what I saw it was 7 years old
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.
Isn’t child labor illegal? Lol
Paying a 7 year old $14k? Good luck buddy. Remember, everything’s deductible… Until they catch you.
“Baby’s Day Out”. Child models do get payment correct? Does that fit into FLSA?
Could they work at 3 different businesses of yours and still be able to get 14k a piece of each business ?
What’s the minimum age limit for this?
6:50
What if I have a 80/20 llc partnership
My girls are 7 and 9, they keep asking for robux, Finna get a timesheet and some gloves to help pull these weeds first. #FamilyBiz
😂
My daughter pays for her dance out of her check. I’ve learned the rules to the tax game and I’m playing by the rules to get my money BACK LOL😂
What about siblings
Any one can be on your payroll
My child is 8 years old can I put him on payroll ?
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 💪🏿
So if my kid is over 21 this vid is not for me?
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 💪🏿
Go to 6:50 in the video
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