We are in a season where most of you do not talk about taxes that much. In such cases, we tend to shelve almost everything about the subject, including reviewing our online and personal identity security. But let me warn you, identity protection is something you cannot afford to ignore perpetually. The reason is that criminals and scammers are on the prowl around the clock, looking for new victims. We have shared articles in the past talking about their criminal activities, and they don’t stop, nor do they change. And in this article, we share the things you should do to protect yourself from identity theft and scams.

Below, we share tips to protect yourself from identity theft and scams.

Study the criminals’ patterns.

The IRS has something it calls “Common consumer and tax-related identity theft scams.” I took this statement because of the word ‘common’ therein. This tells you that criminals usually employ the same tactics to steal, for example, bank account information, such as your email address and passwords. Therefore, if they do this regularly, you should study them and note all their usual strategies for your protection.

For example, it is not easy to get hold of your bank account information unless someone asks it from you. Criminals have certain ways of asking for this information. For example, they may send an email with your bank’s logo and letterhead, telling you that something has happened with your account, hence you should change your password. If you are not diligent and don’t verify if it is really your bank, you may click their links and go on to fill in your banking details. As soon as you do that, they will have your email and password.

You could be asking how you verify if the email is from your bank. Well, this is easy: You can simply look at the sender’s email address and compare the last part with your bank’s website. Also, if you click links in these emails, they take you to a web page that might have some similarities to your usual online banking site, but differences always exist. You should also check this and verify the URL on that website. If it is not the same as that from your bank, it’s criminals going after your banking details.

You can also study their patterns by annually reviewing the IRS’ dirty dozen list of tax scams. They release the most rampant tax scams each year, which should give you a solid idea of how these criminals operate.

Learn how to protect yourself, monitor, and report any suspicious activity.

Swift action whenever you suspect you are about to be the victim of identity theft or a scam can protect you. That is why the IRS wants you to learn some methods for reporting and recovering from identity theft in their upcoming webinar, organized in conjunction with the Federal Trade Commission. Attending this could give taxpayers a huge boost in methods they can use to free themselves from identity thieves and scammers.

Nevertheless, you can also protect yourself by totally avoiding working with unscrupulous tax professionals and accountants. These people hold your valuable personal information, and if they are fraudulent, they will not hesitate to sell your identity to someone else and even help them file a fraudulent return so that they line up their pockets. If your identity is stolen, you get into so many problems, which is not ideal for anyone. So, you should be diligent when looking to hire an accountant or tax professional. If you need any of these services, contact my team any time you feel free. We take pride in protecting the identities and sensitive information of all our clients.

Get identity theft protection.

Finally, it is not all the time that you are successful at thwarting criminal activities. Sometimes they will win at your cost. In such cases, you will require some services to provide extra protection so that you won’t lose. Of course, it will cost you some money, but such is the rampancy of identity theft and scams; people are paying insurance companies for protection. More so, some credit bureaus are also offering such services. They are best placed for such because they help you monitor your credit from time to time. Hence, they have all your updated information. If something sinister happens, no one is best suited to defend you than them. Some of their services will monitor identity theft on your behalf, including monitoring the dark web to ensure you are protected around the clock.

In conclusion, you have the first responsibility to protect yourself from identity thieves. You take up this role by actively taking measures that keep your personal information safe. I already mentioned diligence when hiring accountants and tax professionals. But you can also add studying and reading about this subject so that you know all patterns criminals use to steal personal information. With that said, we provide accounting, bookkeeping, and tax services. We deal with people’s identities all the time, which is why we understand the importance of this subject – you should value it too for your safety.

If you require any of the mentioned services, contact my team and talk to one of us; we will assist you. You can also follow us on our social media channels for prompt updates about this subject and many others.

Frequently Asked Questions

1. What is the best defense against identity theft?

The best protection is being proactive; taking the first steps on your own. For example, ensuring that you destroy all receipts with personal information before throwing them away or verifying all incoming emails claiming to be from your bank. Finally, you can also get insurance products for identity theft protection.

2. How can I find out if someone is using my identity?

In most cases, you won’t find out until your bank calls you or when you try to file a return, and the IRS tells you that you already filed it.

3. How do I stop my identity from being stolen?

Always protect personal information and use two-step verification on websites you enter personal information. Two-step verification or authentication is used to provide an extra layer of security by asking you to verify yourself twice before accessing a website. For example, when logging into your bank account, you first provide your password, but another pin will be sent to your phone – you won’t access the account unless you enter the pin in your phone.

4. How do I check to see if someone is using my Social Security number for free?

The best way to check for free is to go to AnnualCreditReport.com, where you can have your free credit report check. Once you access it, carefully assess it to see if there are suspicious accounts you never opened. If they exist, someone could be using your identity to open accounts.

The post How can Taxpayers Protect Themselves from Identity Theft and Scams? first appeared on Suncrest Financial Services | Tax Preparer in Upper Marlboro Md.

The post How can Taxpayers Protect Themselves from Identity Theft and Scams? appeared first on Suncrest Financial Services | Tax Preparer in Upper Marlboro Md.

Teaching financial literacy to your children is the surest way of keeping your wealth beyond generations. Financial literacy for teens and the younger ones below ten is paramount in this dynamic world. Several factors now affect one’s finances than in the past decades, and families that don’t prepare or help every member get the gist of financial issues may lose their wealth – slowly, through financial ignorance. This means that part of an adult’s financial education includes transferring the same education to their children.

I have shared a message close to my heart in the past weeks, and it was about continuity in wealth-building. I shared that, “Your inheritance money and assets are OK, but if your kids don’t have the skills to manage and grow wealth from where you left off, they will eventually put everything to waste and take your family back to poverty.” This is so true and always drives my emotions up the roof each time I talk about the future of a family’s finances.

I posted the above message to show you some of the advantages of hiring your children. These advantages include learning financial literacy, growing their business acumen, and financial management skills such as budgeting, saving, and investing. From the above, you can see that financial literacy can be learned in many ways, including hiring your child and letting her observe while you prepare your taxes and do your bookkeeping and accounting. They will also learn how to handle their salaries at a young age. And many children like this grow up understanding the value of money and how to expand and preserve its value.

Nevertheless, how does teaching financial literacy to your children helps preserve generational wealth?

1. Financial literacy helps kids with money management skills

Money management skills include saving, investing, and borrowing. I am sure you have learned about the importance of good use of debt to build wealth. People that use debt, or other people’s money, to build generational wealth do so because they have vast knowledge about finance. Therefore, by teaching your children financial literacy, you are helping them gain all such skills. They will also know how and where to save and invest their money at a young age.

Armed with such knowledge, even if you die and leave a lot of wealth for your family, you know it will be in good hands. They will have the knowledge to manage their money while carefully investing in further building your family’s net worth.

2. Financial literacy helps kids make better financial decisions

Building and preserving wealth is a series of ongoing financial decisions. These decisions are well-articulated and timed on the back of strong financial knowledge. Therefore, if your child lacks this and they eventually become in charge of your family’s fortunes, that may mark the beginning of the end of your wealth.

For this reason, we should teach our children financial literacy so that they are better decision-makers when they have millions of dollars at their disposal. Money has a way of messing up people’s minds. I have been in the same boat, so I understand what I am talking about. I once shared with my followers how I used to be a shopaholic – and to be honest, most of us can easily get trapped in this wasteful habit. However, if we catch our kids young and help them with financial literacy, such habits could be the last thing to worry about when they eventually have the keys to the family’s wealth.

3. Financial literacy helps kids understand the value of money

Investing and growing your wealth is all about the time value of money. The time value of money states that money is worth more today than it will be tomorrow. In other words, you can buy more with a dollar today than you will buy with it in the next two years. So, the only way to ensure that the same dollar grows and is enough to buy the same things or even more after two years is to invest it. And if you fail to invest it, you would have lost the opportunity to preserve its value.

So, when you introduce financial literacy to your children, they learn about all this. The next time you give them pocket money, and there is change, they will be asking you how they can invest that same money so that it grows. The same children will grow up with the same mind – of investing and growing their money – and become good trustees of your fortune when you eventually die. They will not only seek to spend, but they will ask questions about how to grow what they already have.

Conclusion

Therefore, all the above are reasons you should teach your children financial literacy. If you own a business, one easy way of making them learn this is to hire them. This is because when you do, they eventually start earning their own money – which they will use to make financial decisions like spending and saving. But if you don’t, there are other means such as financial games that you buy for them. If you want to learn more about financial literacy, tune into my weekly radio show, The Money Zone, on rippedradionetwork.com every Tuesday at 7:30 PM EST.

Frequently Asked Questions

1. What is the best age to teach financial literacy?

You can start teaching your kids financial literacy at any age. You only must use a suitable method for each age group. For example, you may use games to help your 5-year-old learn financial literacy and use a different approach for your teen daughter, such as talking to them and giving them financial management tasks.

2. Why is it important to teach children about financial literacy?

Not every family starts off rich. But with financial literacy, family members may know how to use all the resources they have to start building wealth from zero and preserve it for generations. Your children are part of the family; they have a role to play too. They can only successfully play their part if they understand finances.

3. How do you teach children financial literacy?

There are many ways of teaching children financial literacy. You can use games, hire them, or talk to them and give them financial literacy tasks and challenges such as savings goals/targets.

4. What are the benefits of teaching children about money?

Children who have knowledge about money won’t get shocked when they eventually have plenty of it. This protects them from overusing the money or abusing it on dangerous items such as alcohol and drugs. Instead, they will further build generational wealth for their families.

5. How do you introduce financial literacy to a child?

There is no best way to introduce your child because, depending on when you start knowing about this as a parent, you all start teaching them at different ages. However, financial games are a good ice breaker. You may also start giving them pocket money and insist on them saving a part of it. You should slowly introduce more financial literacy activities to them as time goes on. Do not just dump everything on them because it may become too much, and kids do not like that.

6. What are the three main components of financial literacy?

Three main components of financial literacy are saving and investing, borrowing, and understating how you are taxed.

The post Teaching Financial Literacy to your Children Prolongs your Legacy first appeared on Suncrest Financial Services | Tax Preparer in Upper Marlboro Md.

The post Teaching Financial Literacy to your Children Prolongs your Legacy appeared first on Suncrest Financial Services | Tax Preparer in Upper Marlboro Md.

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.

We have prepared the Blueprint to help you and your child open and run the business smoothly

Bonus: Tens of business ideas for your child if you sign up for the Making Young Millionaires Bundle today!

In our circles, we call children kidpreneurs, or teenpreneurs, depending on their age. We purposely do this to send a message that our children are potentially huge earners. They are businesswomen and men who only need good guidance from their parents. As such, we would like for you to join us in not only calling them “Kidpreneurs” and “Teenpreneurs”. But join us to develop their skills into earning businesses. Join this cause because it’s the best thing to do for your child. Help your child start a business today!

Saying this should create a lot of excitement among parents. The reason being that there are many benefits that follow kidpreneurs. And this is the right time to get your child involved in making real money through a real business. If your child starts a business today, they will reap the following benefits;

• Grasp the concept of business at a young age
• They help the family to build generational wealth
• They have ownership and understand its importance when building generational wealth
• Learn financial literacy
• Contribute to the family’s wealth
• Save for College Fund
• Contribute to support their own lifestyles
• On the social front, they reduce hanging around with the wrong crowds as they will be busy running their businesses

You shouldn’t be scared to get your child started; we will make it work, together

Every time you think of getting something done, it’s normal to feel scared. Even when you think of helping your child monetize their gift, you could feel doubt and fear. But I realized that mostly, we don’t fear to act; we fear to fail. We ask ourselves, what if I fail? What if I raise my child’s hopes only to let her down?

We rightly anticipated that, and we would like to protect both your child’s business and your emotions. The Making Young Millionaires bundle we created is the solution. Our encouragement is that you first get your hands on this bundle and go ahead to help your child start a business.

The Making Young Millionaires bundle is the business blueprint you need to cover yourself from any fears. It is what you need to ensure that your child is never disappointed by failure. What it does is to cushion you from making mistakes. It helps you have the courage to get started because you know that you have the right knowledge in you.

What to expect in the Making Young Millionaires Bundle

We said it already; everybody, every family must get this insightful bundle. It is the best Business Blueprint of 2020. It’s solely designed to make your child the champion of 2020 in the “Young Bosses” category.

Your kidpreneur and you should look forward to the following in the Making Young Millionaires bundle.

• Two important courses on Business Start Up & Management as well as Taxes for Young Millionaires. Visit this page to see more details on the courses – you will be impressed!
• A book for your kid and teenpreneur designed to teach them about taxes
• A coloring book with lessons about taxes
• I am a boss too T-Shirt

The above are just 4 bullet-points about what to expect in the bundle. And, speaking of expectations, it’s time to ask yourself, as a parent of a kidpreneur, “What am I ready to give to make this bundle work for my child?”

This is an important question as it helps in the management of the kid or teenpreneur’s expectations. Remember, our children get excited as soon as we tell them about something. And those are called expectations! The one thing we know about expectations is they must be managed. This is where the parent comes in. Your role is to make sure that each step and tip in this Making Young Millionaires bundle is followed correctly.

If we get this right, then we have this amazing Young Business Blueprint working for us. It will work for your child’s business from the start until decades later. It will work because, for example, in the courses, you will get tips that make the foundation of several facets of your child’s business. These foundations are principles that every successful business runs on. Help your kidpreneur get these foundations today!

It’s a fantastic bundle, what must you do to access it?

We realized that many people are keen on making their children Young Millionaires. Therefore, seats are being grabbed as you read this, and space is getting limited by every minute. We opened up pre-orders to avoid the Black Friday rush, where the bundle goes live, and it’s helped many of our Young Bosses’ mothers.

Therefore, to also get the bundle, pre-order today by following the instructions on the buttons below. It’s in very easy steps, and you could secure the future of your daughter or son. If you decide to make an order when it goes live, that is on Black Friday, join the waiting list.

As we conclude, this bundle secures your kidpreneur’s success in business. It is a roadmap that will lead both of you as this business journey begins. Many people have testified about how gruesome it may be to start a business, both for adults and kids. But you can be assured, we cracked the code, and we nicely packaged it in this Making Young Millionaires bundle! And, getting this bundle comes with several business ideas that your kid or teenpreneurs can pick from.

Ps: Pre-order now your “Making Young Millionaires Bundle” for only $199 for Black Friday Special! Price will go up to $399 after this special offer.

The post The Best Thing To Do To Help Your Child Start A Business first appeared on Suncrest Financial Services | Tax Preparer in Upper Marlboro Md.

The post The Best Thing To Do To Help Your Child Start A Business 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.

How so, you could ask. Well, this article aims to outline all of these benefits, and, I believe that this will help you speed up that process to hire your children. Nevertheless, you just ought to do it lawfully, which is the only way that guarantees these financial rewards for hiring your child in your business.

The benefits of hiring your child

1. Reduces your taxable income through their wages – meaning you end up paying less taxes

Previously, I spoke to my clients and emphasized just how having your, for example, 3 kids working for you reduces the money that you pay to the IRS. Here, we are talking of around $8,000 tax savings every year, meaning that in 5 years, you could save more $43,000 with your 3 kids working for you. How does this really work? Well, your underage kids’ salary from the business is accounted for as legitimate business expenses. As such, they significantly reduce the amount that you end up declaring as profits. Now, that effect results in you paying less taxes to the IRS.

Consider this example, assume you have a 14-year-old daughter that you pay $6,000 over the course of the year to work for you. And, let’s also assume that she is in the 35 per cent tax bracket. So, with the assumption that the money that you pay her would have, otherwise, been part of your earnings, and also taxed at 35 per cent, you see that you earn $2,100 (35% of $6,000) in savings.

So, this not only applies to the child that earns below the standard deduction, but you can also reduce your taxable income by paying her above the standard deduction amount. As a minor in the lower tax bracket, she could be taxed at 15 per cent, or even 10 per cent, and still result in you having to pay less tax.

2. You got money to reinvest in your business

According to the IRS, payments for services rendered by a child under the age of 18, working for their parent(s), aren’t subject to Social Security and Medicare taxes. This applies if your business or trade is a sole proprietorship or partnership where each partner is the parent of the child – and I know that many of my clients will fit in these categories.

And, the payments for services rendered by a child under the age of 21 aren’t subject to the Federal Unemployment Tax Act (FUTA). Therefore, this all saves you money to reinvest in your business.

I speak to a lot of you small business owners and have realized that many struggle with working capital. In many cases, people just labor through a number of years to raise the initial capital. But when it comes to funding the ongoing operations of the business, many get stuck.

But, with hiring your child and saving money, like the $8,000 per year in our first example with 3 kids, you could have a lot to reinvest in the business. There is nothing as small money in business, especially considering that this is the money you were going to lose to the IRS anyway.

3. The kids could kick start a healthy retirement fund for themselves

When you pay your kids, there is an option to encourage them to start contributing to their Roth IRAs, which are tax-free. If they do this well in their teens, we could be talking about tens of thousands of dollars when they reach retirement age. Roth is a very good long-term investment vehicle for your child, if they do it well, they could have a good life post-working.

For children, they could make annual contributions of at most $6,000 or the equivalent of the amount that they earn. For example, where a child earns $4,400 per annum, she can only contribute up to that amount to her Roth IRA. And, if she earns $7,000 per annum, her contribution will, unfortunately be maxed at $6,000 because even though she earns more, the limit that she can invest is only $6,000.

I understand that getting your kids to invest all their earned money could be a huge ask, given their love for malls and finer things of life, but if you can manage to hire them and encourage them to make $2,000 contributions to their Roth per annum for 5 years, that will be $10,000 saved in five years. Double that to ten years, that will be well over $20,000 because as they grow up, their annual maximum contributions will be increasing too. So, think about it this way, that retirement age is around 60-65 years, how much money would they have saved if they started at 15 years old?

4. You get to keep some of your money in your household

Generational wealth is created slowly, and this takes you to be undergoing constant savings and investments when the time is right. Hiring your child helps you accelerate the savings process as has been already alluded to, and it also helps you speed up the level of reinvesting in your business. In this way, you get to keep more money circulating in your own family, for you and for generations to come. When I say this, I do not only mean the money that you keep from what you were supposed to give to the IRS as taxes, but also the money that you actually pay them, because if they save it, it stays for their use in the future when they continue building generational wealth.

More benefits of hiring your child

Besides all these financial benefits for hiring your child, below I list some of the other benefits that you can expect if you successfully hire your own child in your business;

• The child’s professional history gets a boost
• You train your child responsibility to fill the need when it arises
• Your children learn how to safeguard their generational wealth at a young age

Small Copy for the article

One of the most talked about advantage of hiring your own children is the tax advantage that this comes with. But, besides the tax savings, there is also more to letting your child work in your business.

The post The Benefits of hiring your child first appeared on Suncrest Financial Services | Tax Preparer in Upper Marlboro Md.

The post The Benefits of hiring your child appeared first on Suncrest Financial Services | Tax Preparer in Upper Marlboro Md.