Business Development
Smart Tax Strategies: Employing Your Child in Your Business
Understanding the Benefits and Compliance Requirements By James C. Yochum, CPA, Corridor Consulting In today’s competitive business environment, finding tax-efficient strategies is crucial for closely-held businesses. One such strategy is employing your child in your business. This approach not only aids in income shifting but also opens doors to significant tax savings and financial planning opportunities for your child. Income-Shifting and Tax Savings When you hire your child in your business, it’s not just about getting help; it’s a strategic move. This income-shifting strategy allows your business to deduct the wages paid, while your child reports this income. In many