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Can a 1 member LLC, that is taxed as an S-Corp, hire the member's child (under 18) with the wages not being subject to FICA taxes?

Level 2
 
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Nope. Only works for an entity taxed as a sole proprietorship, or as a partnership where all of the interests are held by the minor child's parents.

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9 Replies 9

Nope. Only works for an entity taxed as a sole proprietorship, or as a partnership where all of the interests are held by the minor child's parents.

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Level 15

I would vote no.

ex-AllStar, ex-Lutefisk taste taster, ex-ACME product tester
and ex marks the spot where those rocks and anvils hit me.
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Level 15
Level 15
I was wondering when corporations started having children.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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Level 15
You could always try a DNA test to confirm that.
ex-AllStar, ex-Lutefisk taste taster, ex-ACME product tester
and ex marks the spot where those rocks and anvils hit me.
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Level 2
is that necessary?
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Level 15

Nope. §31.3121(b)(3)-1(d) is clear about that.

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Still an AllStar
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Level 2
Thank you Phoebe and itonewbie.  I was thinking that since it was a 1 member pass through where the 1 member was the minor child's parent, it might work.  Thanks for clarifying (without the sarcasm).
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Level 15
But the sarcasm is thrown in for free and who doesn't like free things?
ex-AllStar, ex-Lutefisk taste taster, ex-ACME product tester
and ex marks the spot where those rocks and anvils hit me.
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Level 15
Glad to be of help.  But the IRMN is right, who wouldn't want a freebie?  :joy::joy:
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Still an AllStar
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