Learn How to Get a $12,950 Tax Deduction Per Child
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A client plans to hire his 15-year-old daughter to work in their LLC and will pay her around $12,000 this year.

You should know that:

#1:  Your daughter has a $12,950 standard deduction, which means she also pays zero tax on earned income up to that amount.

#2: Your single-member LLC is a “disregarded entity” for federal tax purposes and is taxed as a sole proprietorship (unless you elect corporate treatment). You enable “no Social Security or Medicare taxes” for your child and your business.

Paying her through payroll checks and filing a W-2 is essential. If you pay her 1099, she will have to pay self-employment taxes.

P.S. As you can see from the picture, my grandson Asher is already contributing to Palma Financial😍


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