Should my LLC elect S-corp status?
It depends on three numbers, not on what a podcast said.
Source: IRS: S corporation compensation and medical insurance issues
Hiring your kids in your business: what to ask first
Paying your kids can be legitimate when they do real work for fair pay, and the details decide whether it helps. The rules depend on their ages, your entity type and your records. Talk it through with your CPA before you start, not after.
Questions to ask your CPA
- Can my kids be on payroll given their ages and the work they'd do?
- Does my entity type change how this works?
- What records and paperwork should I keep?
These are my opinions, not gospel. Take this to a CPA who cares about you.
Education, not tax or legal advice. Talk with a CPA about your own situation.