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    LLC - sole or partnership

    Client is LLC - Husband and wife - two members - State = GA

    Do they need to file 1065 or Sch C for LLC?
    Can they include their kids as employees? (age 15 & 16)

    I think they would save on ss, fica, & futa taxes. Just wanted to confirm

    Thanks!

    #2
    Llc-2 Members

    Would say that the LLC would be a partnership, form 1065 if both the husband & wife are equal members. and yes, they can hire their kids.

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      #3
      If I'm not mistaken there will be no employment tax savings for children working for husband-wife partnership.

      Comment


        #4
        Children as employees

        in a family business. See TTB 5-20. Children under age 18 working for parent-owned unincorporated business-s are exempt from FICA. The children are also exempt from FUTA if under age 21.
        The wages paid these children are reported on W-2 and are deductible as business expenses.

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          #5
          Bird Legs,

          You are correct. I was thinking of a partnership where one of the partners was not a parent.

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