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Updated about 6 years ago,

User Stats

74
Posts
63
Votes
James Palassis
  • Easley, SC
63
Votes |
74
Posts

Best way to pay children for work performed for LLC?

James Palassis
  • Easley, SC
Posted

I have a single member LLC that was formed to hold my buy and hold rental. This is my first buy and hold, and we are BRRRR-ing it. My son (14 years old) is legitimately helping me with things like pulling nails out of sheetrock, spackling, paint prep, and painting, and we a have pay schedule set up. My CPA suggested I pay him in cash and just keep records and let him know what was paid at tax time. It seems to me, it would be best to pay him with checks from the LLC, backed up by a spreadsheet showing date, hours worked, hourly rate, and pay. I'm seeking advice on how to handle the documentation so I can be on the up and up come tax time. Thank you in advance!

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