Placing Your Children on Payroll in an LLC (2024)

[@karltondennis]

Don’t forget to check out my ebook, _The Short-Term Rental Rule: How to Reduce Taxes Like the 1 Percent!_ ebook.taxalchemy.online/ebook

[@scottpelletier3719]

The link didn't work

[@AvinashSingh-vj3rk]

❤

[@Mark-ow6xr]

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.

[@jaijai1132]

Wow! Never knew that was your mom. Completely makes sense why you are so good. Your mom is an OG.

[@champagnemami5161]

How cute❤ Karla and Karlton saving pockets from generation to generation

[@SP-ns4xk]

Wow, Really great video. So helpful and easy to follow.

[@bhaskarvaranasi4037]

Very comprehensive discussion of the topic. Thanks

[@Luky1731]

Very insightful, thank you.

[@lorianderson874]

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!

[@nolashea]

BIG THANKS for This! 🙌🏽🧡👏🏼

[@ElonCard]

You are THE MAN!!! 💪🏾💪🏾

[@ericasmith1457]

Does this apply to grand children who are out of school for the summer or holidays. My grandson helps on my farm quite often.

[@lesliehernandez6521]

good on my LLC ,BUSINESS EXPENSES I CAN PUT the deduction

[@rafaelmonzon581]

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🙏🏼

[@TheMagicman1971]

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...

[@alovablecreation3863]

What is the correct way to transfer the money from the S-Corp to Management LLC?

[@JDBTAX]

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

[@Chuong-Ngo1991]

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 ?

[@mrsmathis]

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.

[@DTSupstateNY]

Isn’t child labor illegal? Lol

[@Barrybadrinath287]

Paying a 7 year old $14k? Good luck buddy. Remember, everything’s deductible… Until they catch you.

[@expresspetro1552]

“Baby’s Day Out”. Child models do get payment correct? Does that fit into FLSA?

[@ADaughterofAKing]

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.

[@ATCM914]

Great video! Let me see if I understand this right. My kids are 5 & 8. Can I start an LLC and hire them now? And direct deposit their entire checks into custodial accounts?

[@edwinhunnet2666]

Can I hire a newborn? Also, can you talk about paying them as a llc owner?

[@ADaughterofAKing]

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.

[@split0909]

One thing to keep in mind is The Fair Labor Standards Act provides for certain exemptions. Youth younger than 16 years of age working in non agricultural employment in a business solely owned by their parents or by persons standing in place of their parents, may work any time of day and for any number of hours. The video makes it sound like the child would need to be a certain age and also subject to certain days/hours worked.

[@nickj1358]

Does my minor have to file taxes if getting paid less than standard deduction?

[@VanessaFrost-t7z]

Thank you for this video. I've learn so much.

[@tonih9051]

Thank you for this info. Very helpful

[@juliafeng7969]

Thank you ! do we have to fill out a 1099 if we do not operate as S-corp?

[@JazlynTaylor-b9l]

For multiple LLC Can I write off tax reduction for the same computer, desktop, internet, car and office space etc for all LLC

[@laurettelipman7508]

What about if my business is an s-corp corporation? Can I still do this?

[@victorstone3329]

What’s the minimum age limit for this?

[@RalphieVII]

6:50

[@josephchun]

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?

[@nspa7767]

EXCELLENT VIDEO 👍🏼👍🏼👍🏼👍🏼👍🏼

[@p3nguin991]

Isn’t the standard deduction less for children that are claim as your dependent?

[@themarriagegreencardlawyer]

So will the 43k be deducted from the s-corp as business expense? Also can we adjust previous years?

[@TabbyLife8]

Do you have recommendations for great accounting and tax advisor firms that are smaller and fairly priced for small businesses?

[@7heAteles]

What about on camera talent? I’m thinking about creating an art KZbin channel in which my kids of 5 and 8 help teach other kids draw. Could I pay them in a similar fashion?

[@llreliableservices]

if they stay under the federal standard deduction, they don't pay personal income tax but how about state income tax like in California?

[@cootsdancer89]

As the bookkeeper in the family business, do you recommend a certain category for this expense? I’ve been told NOT to categorize it as payroll expenses… 🤔 GREAT info! Thank you so much!!

[@Waterfalls-cz4bi]

Thank you so much!

[@grind957]

How does this work with child support?

[@brianayoung9207]

This may seem like a very stupid question, but I live in the state of California and am preparing to start my journey as an entrepreneur and I would like to hire my children to work with me in the family business. The only thing is there is roughly a 5-year gap between my four children, the eldest being 16, and my youngest being 2 years of age. My eldest middle child is 12 years of age, and I would like to hire her to do simple things like cleaning up, taking out the rubbish or even helping to organize papers and such. Are there any suggestions or advice you could give?

[@jakichandu1]

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?

[@Rkl829]

Thanks! The best …🙌☝️

[@merynwilliams4206]

Does this apply in UK?

[@AdrianAdrianTV]

Is it true that 1099 independent contractor was made illegal after March 11th of this year? I saw a video on KZbin 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?

[@erenteria8938]

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

[@bennyl7339]

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?

[@profitablebusiness8559]

My child is 8 years old can I put him on payroll ?

[@JDBTAX]

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 💪🏿

[@rebornandtransformed9173]

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!

[@herbGoddess_D]

so if the child is under 9 can they still be employed to do simple things like cleaning or organizing?

[@Mrflores3]

does anyone know the following question: when you pay your child under 18, using an LLC, do you just write them a check or does it have to be processed through an actual payroll company like ADP, paychecks, etc? second question, do they have to file a tax return if they are under 18? and last question, in the LLC the Childs pay goes under payroll expense account correct? any ones help would be appreciated!

[@Whiteshoe5]

What if I have a 80/20 llc partnership

[@joyceamalraj5966]

if we pay kids below 18 salary. I heard they don't get scholarships or financial aid for college admissions.

[@priscillabell3171]

What about hire my grandson to do my yard work,for my business

[@deevrodriguez5771]

Freaking love this! Ty

[@ttrill9329]

Could they work at 3 different businesses of yours and still be able to get 14k a piece of each business ?

[@buildingAbiz]

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?

[@victorstone3329]

So what’s the minimum age limit? 1yrd

[@buildingAbiz]

@victorstone3329 from what I saw it was 7 years old

[@robertm1496]

Can we hire our Grand children??

[@milori21]

great details

[@muhammedarif852]

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?

[@Munchy05]

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? 😉

[@thomasdunn-xb7hu]

What about siblings

[@judithpierre8254]

Any one can be on your payroll

[@uwannadance1971]

Heading to the border to get me some! Adoption takes too long. 😂

[@margestrong]

So if my kid is over 21 this vid is not for me?

[@JDBTAX]

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 💪🏿

[@roselanistraus1681]

Go to 6:50 in the video

[@mardelascott7936]

Let’s GO!!!’

[@priscillabell3171]

Thanks 😊

[@dustinlittle4598]

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

[@mrsmathis]

😂

[@mrsmathis]

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😂

[@MikeKessock]

Fake bit comments this guy is a fake

[@VK-jj3zr]

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?

[@erenteria8938]

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