@ToUnderstandTax wrote:
so going back the the LLC hire kid as employee case: in that case
- cna the LLC still pass through income to the LLC member (ie me) when filing tax return?
If it's a single-member LLC it is disregarded for income tax purposes. The LLC and you are one and the same. So the LLC's income is your income, reported on Schedule C of your personal tax return.
@ToUnderstandTax wrote:
- can LLC deduct the expense paid to the employee (kid) and kid does not need to pay FICA before turns to 17 or 18? Therefore the net effect of my income is 0?
Yes, the wages paid to your employee would be deducted as a business expense.
It's not clear to me that you need an LLC to do this, since the LLC is disregarded. If you have a Schedule C business as a sole proprietorship you could pay your daughter as an employee. Your tax return would look the same with or without the LLC. @Critter-3 might have a firmer idea of whether an LLC is necessary.
