Hiring Your Child: W-2 vs. 1099

Are you a business owner considering hiring your child to help with your business? It's a great way to teach your child about the value of hard work and responsibility while gaining some tax benefits.

But should you hire them as a W-2 employee or a 1099 independent contractor? In this informative video, I’ll break down the differences between W-2 and 1099 forms and discuss the pros and cons of each when it comes to hiring your child. You'll learn everything you need to know to make an informed decision and ensure that your business is set up for success.
If you help with reducing your tax burden, don’t hesitate to book a free consultation.

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[graceluo]

great video, thanks! One question, how can IRS knows this is a special W2 from parent LLC to kid? Any box on W2 indicates it?

[wattsobx]

I was told that if I hire my child under my single member LLC and they are under the federal limit. I dont have to w2 them because they are under the federal limit and dont have to pay payroll taxes either. Thoughts? Say they made legitabmely helping out $5000. (granted they would have their own bank account, and get monthly ach for their pay, and a timesheet)