How to Pay Your Kids in Your Business!

Sep 16, 20257m 50s9.1K viewsScore 85
Regulations & Compliance
intermediate
paying children
tax deductions
family business
earned income
Roth IRA
M

Summary

AI-generated

Learn how to legally pay your children through your business to reduce your tax burden and teach them financial literacy. Discover the rules for different age groups, documentation requirements, and how to leverage these payments for long-term wealth building.

Key insights

  • Including adult children (18+) on your company's Board of Directors or Board of Advisors allows you to deduct travel, dining, and meeting expenses for family business retreats.

Mistakes to avoid

  • Paying 'unreasonable' wages for the work performed. Wages must match the market rate for the task and the child's ability to avoid IRS scrutiny.

Tools & resources

  • KKOS Lawyersservice

    Legal and tax consulting services for business structuring and family payroll.

Frequently Asked Questions

Curated by Learn STR by GoStudioM · Summary & key insights generated by AI · Reviewed by editorial