Hire Your Kids To Save THOUSANDS In Taxes... Here's How

Suggestions on how to name the family management company? So it looks good on paper?

nique nique.

Hey Mark Grok‘s telling me that the penalty for not filing a W-2 is static and not a percentage of taxes owed if true then wouldn’t we have to file a W-2 regardless even if zero?

what sucks about this video is I only have an llc and you never do that scenario. so your saying dont pay them until you generate s corp revenue above 160k

how old do they have to be

This was confusing!

Mark, love your videos! You stated “no 1099, no W2’s” and no kid’s tax filings when paying underage kids for helping the LLC business. How do you record the expense on your taxes?

Why can’t you just pay through the S corp to the kids? Like a 1099 or something what’s big deal?

If kids are close to being over 500/1000 hours it’s best to try to keep them under those thresholds to keep solo401k? Until at least they truly become full time employees and then get going with a new 401k plan?

We don’t have our s corp set up yet but we have a disregard llc, a rental property also in an llc. How can we capture them for 2023 because they actually worked in the business and we paid them. Help please

You are a breath of fresh air

Question Mark, so, with a child employee, paid as outside labor via a sole prop or smllc, how would you prove 'earned income' without a w-2 or 1099 and thus qualify for an IRA? Honest question. It's the last piece of the puzzle as you cannot contribute to any type of IRA without earned income.

then by way of a follow up, in the Outside labor for the sp/smllc, would the child simply invoice the sp/smllc? or what would be proper documentation for the payment? (outside of the check being written/funds transfered)

Nice videos! Do you have to issue your adolescent kids (e.g., 16 yr olds) a 1099 for income of $13k per year even if they don’t file taxes and do you have to report this to the IRS?

my Panamanian trust collects the income tax free. i use my credit card issued in bahamas to access the money. plus i get airline miles. any other system just foolish

question, can you hire a service dog and or an emotional support animal?

and if yes, is that a tax cut?

Thank you for there great practical advise !

Hit 200k? today. Thank you for all the knowledge and nuggets you had thrown my way over the last months. Started with 14k in last month 2024

I gave my kid $4,000 as payroll and my tax person only put that I gave her $500 because if not she needed to be a 1099 because it’s a new law for 2024. Not sure how true this is or if the accountant just wanted to benefit herself to make more money.

But on IRS site - "If the business is a corporation, a partnership (unless each partner is a parent of the child), or an estate (even if it is the estate of the deceased parent of the child):
Payments for services of a child are subject to income tax withholding, social security taxes, Medicare taxes and FUTA taxes regardless of age."
Does this mean if I pay my kid from my LLC as "outside labor" like Mark suggests, the child would still need to file taxes at the end of the year even if they make under the standard deduction as a dependent?

For an S Corp I get setting up a family mgmt co to pay my kids through, but wouldnt it also require filing a schedule C? Does my sole prop family mgmt co then bill the cost of the schedile c filing to my s corp?

How would this work if I have an LLC taxed as an S-corp employing kids under 18; W2/1099 or outside labor?

What’s the youngest age you’d pay your kid at?

Hey mark j Kohler 😊👋

How about my wife?

In January, I started keeping track of all my kids expenses, for payroll purposes.

I've been waiting for a video like this. Thank you!