Business & farm

@Critter-3 has given you some good advice.  You really need to see  a local professional.

 

It appears that you want to claim the S Corp's expenses on Schedule C of your own tax return. That is not correct.  Rather, the S Corp must file its own return (1120-S), and then issue a K-1 to the Shareholders (you), which they then report on their personal returns.  See, for example:

S Corporations | Internal Revenue Service (irs.gov)

S Corporation Compensation and Medical Insurance Issues | Internal Revenue Service (irs.gov)

 

Also be aware of Federal, State and local labor laws, especially since you indicated that your children are under age 12.