If you’re like a lot of ecommerce business owners we’ve worked with, you’ve probably avoided hiring anyone in your business until you absolutely have to. Hiring strategically is important. However, deciding how to classify your new hires can be ambiguous at times.
Back in 2015, the government passed the PATH Act which permanently extended the federal R+D tax credit and expanded its applications. A big reason for passing the PATH Act was because of the rapid changes in technology which have forced most businesses to constantly innovate.
The tax savings of hiring your child in your online business are a considerable benefit, but there are other benefits to hiring your child that you can’t put a price on.
Specifically, teaching your child or grandchild the value of money, as well as the importance of working hard and the reward of doing a good job.
Tax benefits aren’t the only advantage to being an S-Corp. Another little-known benefit is that you can set up health insurance under the S-Corp and deduct your insurance premiums as “self-employed health insurance.” Nice, right? But you can only do this if your ”self-employed health insurance” is included in your W2 wages. In other words, it’s important to get a tax professional’s advice in setting it up right.
Unless you want to repeat the hectic, stressful crunch time of tax season all over again, it’s important to make Money Meetings a priority.
Summer is the perfect time to make them a regular part of your business’ monthly life cycle.