If you started a new business, you are on your way to becoming a first-time employer. This topic is relevant for my readers who have been following the Hire your Child tax strategy content I have been publishing on my social media platforms and my website. This tax strategy has been saving families tens of thousands of dollars each year. And some of you saw this opportunity, but you had not registered your side hustle as a business. Therefore, you listened to my advice and registered your companies. Now you are on your way to making a first hire – which could be your child.

That’s excellent news. Suppose you have not registered yours yet, but you give people hairdos during the weekend, or you own an informal coffee shop where you work with your kids, as examples. In that case, it’s time to formalize it by registering your business and start building genuine, generational wealth from that business you thought was only a side hustle.

Your business is worth so much more and can give you a real start to becoming a millionaire – register it now and follow the steps below to hire your child for the first time. These steps formalize you as a real employer suitable for the tax benefits of hiring your child.

Here are the steps to make your first hire, even if it is your child.

As a first-time employer, you must ensure that you hire the right person for the job. More so, you must ensure that you do it right, especially if you are hiring your child to save money on taxes. Failure to do so means all your efforts will be for nothing come tax season.

1.  Obtain an Employer Identification Number (EIN)

Obtaining an EIN is one of the most critical steps you must take before hiring your first employee. Imagine listening to one of my videos and decide to register a business from your side hustle and hire your child. As soon as you successfully register the company, you must obtain this EIN so that you can use it whenever communicating with the IRS. To get the EIN, go to the IRS website and file IRS Form SS-4.

2. Prepare to withhold tax

Besides registering with your state’s labor department for unemployment compensation taxes, you also need to get ready to withhold taxes. To get ready, you need to set up a payroll system that allows you to withhold social security and Medicare taxes from your employees. Get the IRS Publication 15, Circular E, Employer’s Tax Guide from the IRS website to understand more about this.

Even though your under 18 children will not be liable for these taxes, you will still need to file them with the IRS. It is your legal responsibility.

3. Define roles for each soon-to-be-hired employee

As mentioned at the beginning of this section, you must hire the right person for any position. It is even more critical if you are hiring your child to enjoy tax benefits. Therefore, first, define the role that your child will fill. If it is a general office assistant – printing papers, copying, and answering calls, it must all be written in her job description. Such information helps in case the IRS wants to know more about your child’s position and salary. While defining these roles, it is essential to assign a function that your child can perform. Otherwise, they cease to be bonafide employees, which could be a problem in your bid to save money on taxes.

4. Ensure that other tax obligations are fulfilled

There are still more steps that you need to take for tax purposes. Some of them may be a little confusing, which is why you may need to talk to me about my tax services, or if you need something explained to you. Taxes are every business’ legal requirement. Therefore, take these steps seriously so that you build generational wealth without the IRS breathing down your neck. In my experience, it is the one thing that can drive you crazy and drive your business to the ground.

Therefore, fill out forms such as the IRS Form W-4, Withholding Allowance Certificate. Employees use it to tell you how many allowances they are claiming for tax purposes. In turn, it gives you, as the employer, the chance to withhold the right amount of taxes from their salary.

5. Other requirements

You must file Form I-9, Employment Eligibility Verification, to demonstrate that each employee in your business is eligible to work in the U.S. You must keep these forms in your office, inside each employee’s file, in case there is a need for inspection.

Frequently asked questions

1. How do you hire your children in your home-based business?

You must ensure that your children are bonafide employees. This means that they must be legitimately hired employees who have signed a standard contract stating their work conditions.

2. How do I pay my child from my business?

Always, you must pay your child using a check or bank deposit – not cash. A bank deposit or check allows you to trace the money you paid them in case the IRS raises an audit.

3. Can you employ your children in your business?

Yes, you can. The Tax Cuts and Jobs Act allows parents who own a partnership or a single parent who runs a sole proprietorship to hire their children and not withhold certain types of taxes from their salaries. Age does not matter; your child simply must be able to perform the task they are hired for.

4. How do you hire someone for a new business?

If you are a new business, you can still hire your child. But you need to fulfill the steps required for you to be a legal employer (see the article above).

5. What do I need to know before hiring my first employee?

Before making the first hire, you need to know your state and federal labor and tax laws. For taxes, you might want to engage a tax professional so that you have the right start.

The post Just Opened a New Business? Here Are the Steps to Hire Your Children first appeared on Suncrest Financial Services | Tax Preparer in Upper Marlboro Md.

The post Just Opened a New Business? Here Are the Steps to Hire Your Children appeared first on Suncrest Financial Services | Tax Preparer in Upper Marlboro Md.

Below, I give you the three essential rules for hiring your child.

1. Make sure that they are a Genuine Employee

The first question to ask yourself when hiring your children is, are they bona fide employees? The second one should be, how do I make them bona fide employees? A bona fide employee simply means a genuine employee, as stipulated by the employment and labor laws.

How do you make one such a lawfully employed individual?

Firstly, as an employer, you must have an employer identification number to use when dealing with IRS matters. This is an important step if you are registering your business for the first time so that you can hire your child. There are not many steps involved in obtaining this employer identification number (EIN). There is no need to panic about it as I will provide such information in my upcoming How to Hire your Child Masterclass, which you can register for the waiting list now.

To make your child a bona fide employee, you must also ensure that they are hired legally, with a standard employment contract stipulating their duties, working hours, salary, and other conditions fulfilling the Fair Labor Standards Act (FLSA). The responsibilities that your child performs for your business must be within the ‘ordinary and necessary’ brackets for your business. For example, if you own a coffee shop, you can hire your child to sort disposable coffee mugs because it is required in the business. But you cannot hire them using a contract that says they are providing ‘typing services’ when that is something you barely do in your company

2. Follow the Tax Guidance

Indeed, hiring your child shifts some or most of your taxable income to the child you employed. But for this to be a reality, you must do it within the tax guidelines. What are these? These are rules set out by the IRS, stating the conditions in which you can hire a child and deduct their wages. These pertain to the ages of the children you can hire and not pay certain taxes and the types of businesses that are allowed to use the hire your child tax strategy. Again, I will talk widely about these important rules in my upcoming How to Hire your Child Masterclass, for which you can register for the waiting list now.

Other legal requirements are providing your child’s social security (SSA) number, the IRS forms you must fill out, and verifying that the child is eligible for employment in your business. Doing these things is not easy, but after attending my How to Hire your Child Masterclass, many things will be clarified, including showing you some easy steps to get it done.

3. Pay them a reasonable salary

Finally, you must pay your hired child a reasonable salary. This means that you cannot underpay or overpay them. What you pay your child must be within an average wage paid for the same job in the industry. However, considering their age and experience, you can pay them a lower salary – but it is advisable to pay them as much as you can to allow for more tax benefits or savings. Besides worrying about paying your child, you must also ensure that whatever you pay them is traceable. This means paying them by check or transfer into their bank account, always, rather than cash. In case you are audited, this payment history will help you win the audit.

Bottom Line

The standard deduction set by the Tax Cuts and Jobs Act is massive. By hiring a single child, you automatically redirect a massive $12,550 to your child, based on the 2021 standard deduction. This, of course, is based on an annual $12,550 salary for your child. If you pay them more than this, they will still save because under 18 children hired by parents do not pay social security and Medicare taxes. Overall, hiring your child results in so many savings through taxes. It is worth doing if you have a business and have children that you can employ.

Try this out and start building generational wealth. I always talk to the people without businesses, yet they spend weekends doing people’s hair and make-up for functions. If you run such a side ‘hustle’ as we like to call them, consider registering as a sole proprietor and hire your child to help you. This way, you can save more money by reducing the taxes you pay to the IRS.

Did you get excited while reading this? If so, register for my upcoming How to Hire your Child Masterclass. It will only take a minute to become a part of this critical course.

People have also asked the following questions

1. What are the Tax Benefits of Hiring Your Children?

There are two main tax benefits of hiring your child. 1. Their salary is not subject to social security, Medicare, and FUTA taxes. 2. You can deduct their salary as a business expense.

2. Why It’s Tax-Smart to Hire Your Children?

Hiring your children does not only result in tax savings, but the money you save is kept in the family. For example, if you pay one child $12,550 in 2021, that will be a full tax deduction, but the money remains in the family through your child.

3. Is Hiring Your Child as an Employee a Good Idea?

Yes, this is an excellent idea for both the child and the family.

4. What Are Some Benefits of Employing Your Child?

Besides financial benefits, hiring your child also provides more advantages for both the child and the family. For example, it results in outstanding family bonds as well as helping the child become financially savvy.

5. What Are the Risks of Hiring Your Child?

There are no known risks of hiring your children. Hiring them results in several tax benefits and other benefits, such as learning how to run a business at a young age.

The post 3 Important Rules for Hiring Your Child first appeared on Suncrest Financial Services | Tax Preparer in Upper Marlboro Md.

The post 3 Important Rules for Hiring Your Child appeared first on Suncrest Financial Services | Tax Preparer in Upper Marlboro Md.

The ‘tax link’ is an all-important starting point

This, honestly, has nothing to do with me being a tax professional. But it is fundamentally true that hiring your child as a tax strategy is the real starting point. Why say this? Well, this is because if you employ your child for the sake of preparing them for succession as it used to be long ago, your family will only realize the benefits once that child is old enough to lead the family business. Wanting this (succession) alone has some level of risk to it. What if the child grows up and does not want to run a business like that of your family? If they want their own thing, indeed, all your years of training them would have been for less. But if you hire your child as a tax strategy to create generational wealth, there will be more to benefit as soon as you hire them. Below, I explore these benefits.

Financial benefits of hiring your child

Running a sole proprietorship or a single-member LLC that pays taxes like a sole proprietorship? Or, are you a husband and wife partnership/LLC? If that is the case, you do not have to pay payroll taxes or withholding for your under 18 children. These taxes include;

• Social Security Tax
• Medicare tax
• Federal Unemployment Tax (FUTA)

When your child turns 18, you will still benefit from hiring them even though the benefits will be slightly lower than for the under 18s. For children over 18, you will need to start remitting Social Security and Medicare taxes. However, they are still exempt from FUTA until age 21.

Now to the numbers. I opened this article sharing why you should move from only targeting succession when employing your child. I am saying this because of the fact that now there are real financial benefits of hiring your child. This is even more so after the Tax Cuts and Jobs Act which took the standard deduction from $6,500 to $12,000 for individual filers, from $13,000 to $24,000 for joint filers, and from $9,550 to $18,000 for heads of household back in 2018. The standard deduction is what results in significant savings for your employed child.

If you hire three of your children and pay them $12,000 annually, that translates to $36,000. All this money is a legit business expense. As such, you can deduct it against your taxable income. Next year, when the Biden Administration’s 28% corporate tax rate kicks in, that will be a massive $10,080 ($36,000 X 28%) saved in taxes annually. In 5 years, your business can save $50,000 by just hiring your three children.

Moreover, the standard deduction is $12,550 per individual in 2021, so up to $12,550 of your children’s earnings will be tax-free. Therefore, besides saving more than $50,000 in 5 years, your family can also massively benefit from the money you pay your children, which, in 5 years, totals more than $180,000 for all three kids.

Here is how your family benefits from your children’s salaries. Even if your children are under age 18, they can also contribute some of their money to a Roth IRA. If you pay them more than the $12,550 (cut-off for standard deduction), contributing to a Roth IRA further reduces their tax bill.

In the end, they basically keep all their money. Besides a Roth IRA, kids can contribute to a savings account or an education fund. This will massively help your family when they eventually grow up, cash out their savings, buy assets or stocks, effectively building generational wealth. More so, saved education funds save the family from financial burdens when the child goes to college. The family can further invest their money and grow the business instead of paying college fees in cash.

This is how wealthy families build generational wealth. They create room for their money to grow instead of being burdened by perpetual bills. Therefore, you too, when you are old, should only be worried about estate planning rather than finding money to pay for your older children’s college fees. Hire your child now also to live this incredible life. To start your journey towards generational wealth, register for my upcoming How to Hire your Child Masterclass. Visit this page to register. It will only take a moment to create a fantastic future for your family.

People have also asked the following

1. What are the Tax Benefits of Hiring Your Children?

There are two main tax benefits of hiring your child. 1. Their salary is not subject to social security, Medicare, and FUTA taxes. 2. You can deduct their salary as a business expense.

2. Why It’s Tax-Smart to Hire Your Children?

Hiring your children does not only result in tax savings but the money you save is kept in the family. For example, if you pay one child $12,550 in 2021, that will be a full tax deduction, but the money remains in the family through your child.

3. Is Hiring Your Child as an Employee a Good Idea?

Yes, this is an excellent idea for both the child and the family.

4. What Are Some Benefits of Employing Your Child?

Besides financial benefits, hiring your child also provides more advantages for both the child and the family. For example, it results in outstanding family bonds as well as helping the child become financial-savvy.

5. What Are The Risks Of Hiring Your Child?

There are no known risks of hiring your children. Hiring them results in several tax benefits and other benefits, such as learning how to run a business at a young age.

The post It’s all about the numbers. Hiring your child can do this for you in 5 years. first appeared on Suncrest Financial Services | Tax Preparer in Upper Marlboro Md.

The post It’s all about the numbers. Hiring your child can do this for you in 5 years. appeared first on Suncrest Financial Services | Tax Preparer in Upper Marlboro Md.

If I may borrow words from The Script’s song, Hall of Fame, your business can be the greatest. It can be the champion. It can be the greatest thing to ever happen to your family. Your business, no matter the size, can build generational wealth for your family. I understand that many small business leaders are intimidated because of statistics around us. They fear news such as, “20% of small businesses fail in their first year. 30% of small businesses fail in their second year, and 50% of small businesses fail after five years in business. Finally, 70% of small business owners fail in their 10th year in business,” according to Fundera.

Besides small businesses, large businesses do struggle as well. For most of them, being profitable, paying employees, and taxes could be eating up extra cash flow to expand operations and keep more money for generational wealth. In such a scenario, you end up having small, medium, and large businesses struggling. But, does this mean that business owners and potential ones should be stressed and prepare for failure? I don’t think so – remember, your business can still be the champion in your life.

Why say all the above? It is because both small businesses and large ones can create generational wealth for owners. You could be a sole proprietor, or you could be running a small firm in your backyard. Someone could also be running two or three restaurants in the city, and someone else running a slightly larger business. All of these are capable of creating the much-coveted generational wealth. Having said that, creating and maintaining it is never about the amount of money you make. But, it is all about the level of consistency you show when following specific rules or steps on how to create generational wealth.

The rules or steps of building generational wealth have nothing to do with the size of the business you run. Anyone can follow them and be worth millions of dollars decades later. Therefore, what are the rules for creating generational wealth? See below;

• Hire your child, even when she is seven years, it’s legal
• Pay your tax on time
• Avoid Payroll errors
• Keep your bookkeeping in order and keep your accounting in shape
• Save money for future big investments
• Start saving when you are young, and encourage your kids to do the same
• Be accountable as a leader, and encourage accountability among your employees
• Take courses from time to time to sharpen your skills
• 

Hire your child, even when she is seven years, it’s legal

Small businesses and sole proprietors can hire their children and reduce the money they are taxed on. The IRS encourages this and says it is a very good tax strategy. It is hassle-free. You just got to do it in the right way. I understand that many do not understand what the right way is. But you can get this information from a practitioner, like myself, or anyone of your choice. When hiring your children, age does not matter, as long as she can deliver on the work – it’s totally legitimate.

Pay your tax on time

Many small businesses lose millions to IRS’ penalties because they file their taxes late. I am going to be honest with you; the IRS is not your friend. They will not do any favors for you. If you are going to be late in your tax filing, they will come heavy on you. Those amounts they take can destroy a business. That is the last thing you want because it cuts short your bid to build generational wealth.

Avoid Payroll errors

Hire experts to get a better understanding of the US tax codes and the details of payroll compliance. Failure to do so may result in hefty penalties. Each year, studies show that the IRS fines small and medium businesses billions of dollars due to payroll errors. You surely do not want to be part of that statistic. Working your time cards, overtime, and other payroll details could be tricky, make sure you understand these better.

Keep your bookkeeping in order and keep your accounting in shape

I always say that all transactions you do in business reflect in your bookkeeping and accounting. The IRS taxes you using those details, and they want them to be a true reflection of what has been happening in terms of sales, costs, and revenue. Imagine now having to declare falsely, resulting in the IRS taxing you wrongly. I can assure you, if they decide to come for an audit, they will bust you and fine you massive amounts. These fines gravely threaten your business. If your business dies because of the fines, you won’t be able to build generational wealth. On the contrary, if you do it well, you can get more returns and tax breaks from the IRS. You can use these to reinvest in your business and grow it for generational wealth.

Save money for future big investments

If you can’t buy it today, you can surely buy it tomorrow. That’s the rule when it comes to huge investments that build generational wealth. Therefore, when running a small business, utilize savings to keep the money to vastly expand your business after a few decades, or to buy into another vast business and real estate. More so, you must begin saving when you are young. It gives you more time to set aside more money. If you hire your kids, encourage them to save from a young age. When they are old, this money would be running into millions – enough to start generational wealth. 

Be accountable as a leader, and encourage accountability among your employees

All the other points that help you build generational wealth are great, but accountability is mostly needed. Why say this? Because without it, you can skip one or more of the above and still don’t see the need to correct yourself. Accountability is like a glue that makes sure that all your operations don’t break down. Therefore, you must have it when leading your business. It helps you achieve every goal you set towards building lasting wealth.

Take courses from time to time to sharpen your skills

In the above, we mentioned accountability. It’s one of the things you can take a course for. Some people are naturally accountable, but as a business leader, you may need to take courses that teach you how to implement accountability in your business. Besides, accountability is not only the course you need to keep your business growing. You will need a lot more others like bookkeeping, management, accounting and so forth. These are the skills you will use to grow your business as you build generational wealth. Educational Courses help you to have good business acumen; pursue them to assist yourself in building lasting wealth.

Visit bit.ly/hireyourchildregistration to learn more on “How to Hire your Child”.

The post How to Build Generational Wealth for Every Business first appeared on Suncrest Financial Services | Tax Preparer in Upper Marlboro Md.

The post How to Build Generational Wealth for Every Business appeared first on Suncrest Financial Services | Tax Preparer in Upper Marlboro Md.

Well coordinated tax planning makes wealth grow faster. Tax planning, when running a small business, may involve hiring your child. And this is something we are encouraging black small business owners to do.

I spoke about generational wealth to some black business owners during the month. What I gathered was mostly positive. But I saw the need to always clarify two things before explaining the subject. And these are Money and Wealth. I realized that many black business people confuse the two. But, there is always a reason why we call it Generational Wealth, NOT Generational Money, isn’t it?

Well, according to the Cambridge Dictionary, wealth is “a large amount of money or valuable possessions that someone has.”

On the other hand, Investopedia says that, money is “an economic unit that functions as a generally recognized medium of exchange for transactional purposes in an economy…” I know, they have many words that they use to explain this further. But I am only interested in the part where it says money is recognized as a medium of exchange, and, only for transactional purposes.

As such, you can use money for transactional purposes. For example, when you want to buy bread to eat today, you can use money. But when talking of wealth, this is the money you use to store value. This value is what next generations can enjoy and leave some for generations that come after them too. Whereas money can be stored in your bank account, or wallet, piggy bank, and more, it’s different with wealth. Wealth is value stored in a business, building, or shares of a company. More so, wealth could be millions lying in a savings account somewhere.

So, can you, as a black business owner, create generational wealth? The answer is a big YES!

Even if the answer is a big yes, many people failed to believe in this a long time ago. Therefore, you notice that some black businesses struggle to build real wealth. The same can be said of black people that struggle to build wealth. But it is possible. You can build it from your small business.

The points below explain how many black people, and their businesses lag behind in wealth accumulation.

• The Federal Reserve, in its Survey of Consumer Finance, says that a typical black family has only 10 cents for every dollar held by a typical white family.
• In the USA, white people have always outweighed black people in household wealth.
• In 2016, it was found out that a typical white family’s net worth was $171,000. That of a typical black family is nearly ten times less, at $17,150.
• 65–74-year-olds in median white people have $302,500 in wealth. A median black person has $46,890 at the same age range.
• Research shows that black people efficiently translate resources into educational investment. Whites, on the other hand, invest in business and entrepreneurship.
• In the United States, it was also found that white people are afforded numerous informal opportunities. These allow them to get higher returns out of a given level of human capital, leading to increased wealth creation.
• Non-whites, on the other hand, have fewer informal opportunities, and they, therefore, deploy more efforts and resources into skill acquisition as a strategy to overcome their informal disadvantage.

Looking at the above, you notice that one point states that a 65–74-year-old median white person accumulates up to $302,500 wealth while a median black person gathers $46,890 at the same age range. This is how much black people have been sidelined in wealth creation in this country. But, as much as we understand that the past has been sad, we can’t dwell on it much. It is there to remind us where we come from, but we must now focus on creating wealth in our own ways.

Studies show that black people invest more of their money in the education system. I know, I am a degreed person, very qualified, but that must not define my boundary. People go to school so that they get into jobs, but why not get in there to learn entrepreneurship? I will show you why.

According to Market Watch, a 2011 study showed that white Americans are wealthier than black Americans, regardless of education level. In the survey, a black person with a post college qualification has wealth valued at $84,000. As for whites, a post college qualification holder has a median wealth of $293,000. This is more than double what an average black person has.

There is also something interesting in the numbers. Even without a college degree, white people have a median wealth of $78,300, while their black counterparts have only $3,200.

Why all this massive gap among these high school graduates? Well, it is because of entrepreneurship.

My message to you is clear; it is better to depend more on building a business for wealth creation. Black businesses can create generational wealth too. You do not have to depend on the schooling system and hope to get a job with Morgan Stanley or any other top company. For what we have seen, answers are right within you, especially that you own a small business.

The US has a history of allowing the white community more opportunities in small businesses than in black businesses. But, even without having to depend on the system, your black business can gather wealth for you.

Many black business people have hired their children using our template, and that has saved them tens of thousands. They use this money to reinvest in their businesses. This principle works well, whether you are white or black. After hiring your children, they, too, can use retirement savings from an early stage to even beat what an average white person has after attaining the age of 65. I am sure we revealed that an average white person has more than $300,000 with them between the age of 65 and 74 years. But, according to our calculations, we revealed that by saving, from a time when a child is 7years old, she could have millions by then. Remember, hiring your child and creating generational wealth is all about the children.

So, if you are to ask me which one works better, relying on white opportunities in the corporate world or hiring your child in your small business, I would choose hiring your child all day. Black businesses, too, can build generational wealth.

The post Black Businesses Build Generational Wealth Too first appeared on Suncrest Financial Services | Tax Preparer in Upper Marlboro Md.

The post Black Businesses Build Generational Wealth Too appeared first on Suncrest Financial Services | Tax Preparer in Upper Marlboro Md.

Some years back, I used to work in my dad’s office, and I was very young then. We were in Washington, DC, and I must say that not many things were pleasing about me. For example, this was in an impoverished, predominantly African American community. I saw firsthand the struggles that people go through. The struggles were part of my life too – perhaps, until a time when generational wealth became a subject of interest.

Having been working with my dad, that was the time when I started my own generational wealth journey. For him, he was also playing a part in something that could end flourishing when my kids are older. This means that this kind of wealth is focused on kids you have now, as well as theirs in future.

Looking at the above, it is clear that, being a business person, you can’t just work alone for your kids. But you fulfil the generational wealth conundrum by helping your kids become business minded too. If they can’t be like that, how are they going to sustain the wealth you build today? Only their business acumen and financial discipline will ensure that there is generational wealth some 30 years down the line. In short, you build generational wealth while working with them.

Kiddipreneurs and the generational wealth conundrum

After saying all the above, it makes sense to bring the subject of kiddipreneurs. This is a word used to describe kids that become entrepreneurs. I brought them in this article to show you that generational wealth is not only about hiring them. But goes beyond them using the set of skills they learn while working in their parents’ business to build their own.

Therefore, as you hire your children, make sure to steer them towards business leadership and entrepreneurship. These are the qualities they will use to grow and sustain generational wealth.

I know, many could wonder if it is possible for kids to start businesses. I say that it is totally possible. “My name is Hannah Grace and I’m 12 years old. I love using health and beauty products and I love making them too!” This is the message you get on the homepage of BeYOUtiful, Hannah’s bath bomb business website. She is only twelve years old, but has been in business for a couple of years now.

From her story, I discovered that she was challenged by her father to make the things she loved. And, by mentioning her father, I am reminded of the role that parents play in helping their children become millionaires. Even if we are to say Hannah’s dad did not own a business to hire her, he helped her develop an entrepreneurial mindset. And we don’t know how much business acumen she is still learning from him.

So, by hiring your children, you want them to run a bigger business in future. That bigger business they will be running is the one that creates more generational wealth.

How can parents help their children become millionaires?

First, you got to learn how to hire them. This, you can do through learning from a tax practitioner or accountant. The purpose of going through an accountant is so that they tell you what tax benefits you stand to get. They tell you how to avoid payroll taxes legally.

Secondly, once you start saving money from tax, you now have something to reinvest in the business – so, that helps you grow YOUR current business. The child can inherit it later when it grows. That is another part of building generational wealth.

Still on this, there is the money that you pay your kid. Teach her to save this money since that young age. We spoke about various means of doing so in the previous How to Hire Your Child Masterclass. For those that did not attend, the replay is available for purchase.

In terms of her saving her earnings, the IRS allows her to invest up to $6,000 per annum. Now, this is a lot of money, especially if you teach them when they are still under the age of ten. The money grows to something amazing after 50 or so years.

Therefore, think about it this way; there is now the business you grew through tax savings from the IRS. And there is also her money that she invested over all these years. These two, combined, gives her an amazing shift in her net worth. With all this money, she can invest in real estate, stock market, or expand the family business, opening up new branches. That is how you build generational wealth.

Thirdly, besides all things money, tax breaks, and so forth, part of generational wealth building involves learning. When you hire your child, you show her many things about the business. Every task you let her do is a learning curve. Importantly, you also show her how to work with teams since that young age.

Besides the above, your child also learns how to handle her finances since that young age. I know someone that does not own a business but always gives her kids some money so that they know how to own it. Some people just get all over the place whenever they get money in their hands. So, as soon as your kids start earning, they will learn to own money and make good decisions with it. When the time comes for them to enhance wealth accumulation, they will do it responsibly.

Therefore, the conclusion to this matter is that as a business owner, all your decisions must be about the child. By running that business, you already started something, and to take it to millions, you will need someone to carry on the load. Therefore, the best way to ensure that someone is available when needed is to hire your child. And, hiring them must be done lawfully.

Ps. Watch out for our upcoming “Business Taxes for Kids”. Coming this Black Friday.

The post Building Generational Wealth Is All About Your Kids first appeared on Suncrest Financial Services | Tax Preparer in Upper Marlboro Md.

The post Building Generational Wealth Is All About Your Kids appeared first on Suncrest Financial Services | Tax Preparer in Upper Marlboro Md.

During the last week’s How to Hire Your Child Masterclass, I mentioned something too important to be missed. I said that generational wealth creation could not only be measured in monetary terms. But, this can also be in terms of how much knowledge we are transferring to the children. For them, it’s a lifetime knowledge-base that allows them to become anything they dream about.

So, we first hire them, pay them, and then share knowledge on how to become millionaires and stay like that.

But first, it is essential to learn the basics as the owner of the small business. I delivered these (the benefits) on our recent Masterclass. One of the most important basic to know is how to beat the tax code using hiring your children. This in itself carries plenty of weight, and you will see how much we spoke about it in the Masterclass.

Nevertheless, hiring your children must be done lawfully. I gave an example of a family that tried to beat the tax code during the Masterclass. But they failed because they did it wrong. I showed attendees how that family was beaten in court by the IRS. They were defeated by the IRS because of so many reasons- which I revealed during the Masterclass. I can feel many hearts jumping in discomfort here. Well, if you aren’t so sure and did not attend this year’s Masterclass, take a minute to order a replay and learn what others learned.

Why this emphasis on the How to Hire Your Child Masterclass?

People have a pattern of just questioning everything, I know, right? I remember feeling the need to explain myself the moment I said Trump did something right for us. Because I knew my audience felt some bit of betrayal from me. But honestly, these good tax laws I am on about are his brainchild. He is the reason why teaching about hiring your child is even sweeter. I don’t have to struggle to make up some really meaningless numbers.

So, before throwing shade at this, I just want to emphasize how important my audience thought it was. I measured this by the amount of interaction I had from them. It was more feedback than ever. And we had so many people in attendance than ever! This shows how much small business owners want to know how to break the tax code – legally. And I want all of you to join the bandwagon – sweet melodies await at the end.

What did attendees learn?

Before revealing snippets of what others learned, let me begin by assuring you that you can still learn as much from the replay. I know, it’s a replay – so, yawn! But if I were you, I wouldn’t dare do that. Why? There is so much more to take from the replay – perhaps that is why it costs more than attending the real class. Nothing beats learning so much from the comfort of your home, at your own pace. Nevertheless, below are some of the important things that attendees of the recent How to Hire Your Child Masterclass learned. You, too, can benefit from them.

• They now know the need to, and how to hire children in proper positions. If there is no position readily available, they know how to create a suitable one for them. `No more randomly telling kids what to do in the company and expect the IRS to buy into that story, come tax season.

• They now know the need, and how to pay children a standard hourly rate or salary. You can’t just let your kid ‘freelance’ as you pay him or her what you want every month. There has to be a standard rate that you consistently follow. This must be your ‘bible,’ keep it in your heart always.

• I told them all about the tax forms they need to file. They now know how to fill out their child’s W-2 form. I understand that many people don’t do this because they just don’t know how we are taxed. Well, attendees to the Masterclass now have full information on this. And this is going to save them hundreds of thousands of dollars.

• Those that attended the Masterclass now have full information on tax due dates. I know some of you have lost tens of thousands to the IRS for late filing. I am glad to have made sure that my people no longer have to worry about deadlines to file.

• So, one of the headaches after hiring your child is how to invest the child’s income. Some people do get it right, and some don’t. But for those that attended the Masterclass, they now have a full range of options to choose from. Just like that, they are on the way to building generational wealth!

• I know, you read about many things about hiring your child. It could be tempting that you choose to trust the internet and be on every MEME that you can. But let me tell you, most of these memes are wrong, they mislead you. What I gave my class is a simple template that you can easily follow when hiring your child.

So what’s the verdict

The truth is that we all need to keep learning as much as we can. More so when you can’t get hiring your child right, losing out on several financial benefits on the way. You will be surprised how much I realized that people don’t know. While in the class, I told people about how someone approached me to ask about opening their child’s bank account. Many people don’t know this but choose to be quiet. But honestly, there is no building of generational wealth if there is no account first to save the money in. There are many small things you don’t know, find us and know more about these.

The post How to Hire Your Child Masterclass: Replay is now available first appeared on Suncrest Financial Services | Tax Preparer in Upper Marlboro Md.

The post How to Hire Your Child Masterclass: Replay is now available appeared first on Suncrest Financial Services | Tax Preparer in Upper Marlboro Md.