Are you considering involving your family in your business? It's a strategic move with numerous advantages, extending far beyond simply giving cousin Jimmy a job. Nevertheless, does employing family members translate to tax savings? Truth is the answer isn't a clear-cut yes or no.
But one thing is clear when it comes to employing family members - the real benefits lie in hiring your own children. Here's a breakdown of the enticing incentives involved:
It is important to point out, that if your business falls under the corporate, partnership (where not every partner is a parent), or estate category, things get a tad more complicated:
So, there you have it - the lowdown on hiring your own family. Remember, while family employment can be a win-win, always consult with a tax professional to ensure you're crossing your T's and dotting your I's.
