If you were to hire your children to work for your business, there are tax and state labor laws to follow.
- Your child's wages may be deducted as a business expense.
- Your child may earn up to the standard deduction for the year without owning income tax.
- You must follow the child labor provisions of your state and the Fair Labor Standards Act.
- You must pay your child a reasonable wage for the work that they perform.
Intuit QuickBooks has a payroll function available for use.
You must pay the child a reasonable wage as well as you need to prove to the IRS that you are operating your business in a legitimate fashion.
You certainly want to investigate the possibilities of pension plans that are available to the self-employed.
A Single member LLC is "treated as an entity disregarded as separate from its owner" by the IRS. That generally means that you report the income on Schedule C of your personal income tax return.
The Intuit Quickbooks website includes an option for 24/7 expert support and review. However, you may want to sit down with a tax professional to discuss your plans and see all of the options that are available to you.
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