LLC - sole or partnership

[Unregistered]

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!

[Bird Legs]

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.

[veritas]

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

[Bird Legs]

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.

[veritas]

Bird Legs,

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