If she does work for the business, pay her through the business.

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Dec 28, 2024
10:27:13am

TwinsRight All-American

If she does work for the business, pay her through the business.

It gives her earned income which you can then use to fund a Roth IRA up to that same amount.

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TwinsRight

Bio page: TwinsRight
Joined: Nov 21, 2015
Last login: Dec 31, 2024
Total posts: 7,932 (495 FO)

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Messages

Author

Time

What are the rules for paying your child through your business?

kosmokramer

Dec 28, 10:25am

If she does work for the business, pay her through the business.

TwinsRight

Dec 28, 10:27am

And she pays taxes on that money at her lower tax rate instead of your high rate

justAnotherCoug

Dec 28, 11:38am

Yes, great tax savings opportunity.

Dec 28, 10:27am

If you have an s corp, create a family llc. Pay the llc, then pay her

diluigifan

Dec 28, 10:37am

Find legitimate duties for her to do at your business. You have to pay her

kotacoug

Dec 28, 10:37am

Does she still get all the normal FICA taxes taken out, do I set it up exactly

kosmokramer

Dec 28, 10:47am

Here is a good article on it….

kotacoug

Dec 28, 1:54pm

If you an s corp, you will have to pay payroll taxes. If you are an llc, she

diluigifan

Dec 28, 5:54pm

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