A simple way your family can reduce your tax burden

That's right those lazy good for nuthins can actually help your small business. It's all in the paperwork.

Reduce taxes by giving your children money for school

Children older than seven but under eighteen are exempt from Social Security and Unemployment Taxes on all income they receive from businesses not yet incorporated. Pay your children to perform legitimate work, and document it, then pay them regularly by check. They pay less tax for the income than you would if you kept the money in your pocket. Also, you can deduct up to $4,750 of their wages from your business. Better still, you can continue to claim them as dependants on your personal tax return.

Call your mother, and then give her a job.

Give your parents some legitimate work and pay her with before tax dollars. Instead of giving her money from your taxed personal income you can hire her to do some (legitimate) work for your business and pay her with untaxed business revenue.

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