I am a sole proprietor. This year I want to hire my kids and pay them from the business in order to reduce my taxable income and to provide income for my kids to start a Roth. I have all my ducks in a row, but I want to run it by someone. This process involves a fair amount of tax related concerns well as investment concerns. I would be grateful for any recommendations on what type of financial advisor/ planner/ CPA, I should consult with.

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wild_b_cat t1_iui9vir wrote on October 31, 2022 at 3:19 PM

How old are your kids, and what would you hire them to do?

What you want to do is legal, but only to the extent you're giving them a fair wage. You can't 'hire' a 6-year old to do some light chores then pay them $6,000.

MasonUberKirche OP t1_iuidb2f wrote on October 31, 2022 at 3:43 PM

Currently its not much money and It’s age appropriate. Ive had to learn a good bit about withholding taxes and what’s required for children employees of sole proprietors. I think I have it all figured out, but a one hour chat with a professional would be with the money to avoid any mistakes.

DeluxeXL t1_iui8w1a wrote on October 31, 2022 at 3:13 PM

You can consult with a CPA.

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