Thank you very much for the reply.
Yes, in my case the business is a LLC and the only partner are one of the parent. So we do quality for no Children payroll taxes.
I do plan to switch to S-corp in the future to save the payroll tax ~15%. But according to your answer, I should not because children payroll taxes is not exemped from S-corp? In addition, switching from LLC to S-corp do I need to redo all taxes in the past years?
In my case, the family business is small and yearly generate profits of ~$10000, and after paying kids $6000 we only have $4000 profits which need to pay $600 payroll tax (~15%). I am balancing the cons and pros of LLC vs S-corp.
I consulted with external tax consultant. Although they provided some interesting ideas, but in general they want me to stop using Turbotax and use their services. I have been using Turbotax for more than 10 years and really don't want to switch.
