All Forum Posts by: Bob Evans

I have a question about the best way to hire my son to maximize tax savings for the both of us.

I am retired and have an S Corp from back when I used to be a travel agent. Now my only income is from rental properties (not under the S Corp) and I'm looking to grow these investments. I plan on hiring my son as a full-time IT consultant (around $20-$25/hour) to create a customized website, network, and payment portal for all my rental properties. He also plans on managing online advertising and creating/maintaining a social media presence.

What is the best way for me to hire my son so that would maximize tax savings for the both of us?

The options I am considering:

1. W2 employee of the S Corp

2. 1099 Contractor hired by S Corp

3. 1099 Contractor hired directly by me

I am even open to adding my son’s name to the S Corp if that would help maximize our tax savings somehow. I am not very knowledgeable on these things and how to maximize potential deductions, so any advice would be greatly appreciated! Thank you.

Bob

I have a question about the best way to hire my son to maximize tax savings for the both of us. 

I am retired and have an S Corp from back when I used to be a travel agent. Now my only income is from rental properties (not under the S Corp) and I'm looking to grow these investments. I plan on hiring my son as a full-time IT consultant (around $20-$25/hour) to create a customized website, network, and payment portal for all my rental properties. He also plans on managing online advertising and creating/maintaining a social media presence.

What is the best way for me to hire my son so that would maximize tax savings for the both of us?

The options I am considering:

1. W2 employee of the S Corp

2. 1099 Contractor hired by S Corp

3. 1099 Contractor hired directly by me

I am even open to adding my son’s name to the S Corp if that would help maximize our tax savings somehow. I am not very knowledgeable on these things, so any advice would be greatly appreciated! Thank you.

Bob

I have a question about the best way to hire my son to maximize tax savings.

I am retired and have an S Corp from back when I used to be a travel agent. Now my only income is from rental properties (not under the S Corp). I plan on hiring my son as a full-time IT consultant (around $20-$25/hour) to create a customized website, network, and payment portal for all my rental properties. He also plans on managing online advertising and creating/maintaining a social media presence.

What is the best way for me to hire him that would maximize tax savings for the both of us?

The options I am considering:

1. W2 employee of the S Corp

2. 1099 Contractor hired by S Corp

3. 1099 Contractor hired directly by me

I am even open to adding my son’s name to the S Corp if that would help maximize our tax savings somehow. I am not very knowledgeable on these things, so any advice would be greatly appreciated! Thank you.

I have a question about the best way to hire my son to maximize tax savings.

I am retired and have an S Corp from back when I used to be a travel agent. Now my only income is from rental properties (not under the S Corp). I plan on hiring my son as a full-time IT consultant (around $20-$25/hour) to create a customized website, network, and payment portal for all my rental properties. He also plans on managing online advertising and creating/maintaining a social media presence.

What is the best way for me to hire him that would maximize tax savings for the both of us?

The options I am considering:

1. W2 employee of the S Corp

2. 1099 Contractor hired by S Corp

3. 1099 Contractor hired directly by me

I am even open to adding my son’s name to the S Corp if that would help maximize our tax savings somehow. I am not very knowledgeable on these things, so any advice would be greatly appreciated! Thank you.

I have a question about the best way to hire my son to maximize tax savings.

I am retired and have an S Corp from back when I used to be a travel agent. Now my only income is from rental properties (not under the S Corp). I plan on hiring my son as a full-time IT consultant (around $20-$25/hour) to create a customized website, network, and payment portal for all my rental properties. He also plans on managing online advertising and creating/maintaining a social media presence.

What is the best way for me to hire him that would maximize tax savings for the both of us?

The options I am considering:

1. W2 employee of the S Corp

2. 1099 Contractor hired by S Corp

3. 1099 Contractor hired directly by me

I am even open to adding my son’s name to the S Corp if that would help maximize our tax savings somehow. I am not very knowledgeable on these things, so any advice would be greatly appreciated! Thank you.

Hello,

New member here. This is a great resource by the way!

I have a question and was hoping someone who is knowledgeable about running businesses (especially S Corporations) might be able to give some advice. My wife and I are both retired and own an S Corp from when I used to work as a self-employed travel agent. We own several rental properties, none of which are under the S Corp though. But now we are considering hiring our son as an employee or independent contractor under the S Corp to help grow our rental investments. We are not sure if this is a good idea though because our S Corp was never used for anything involving real estate before.

To elaborate a bit, our son has been managing our rental properties for several years now (for free). He is a web developer but was laid off due to COVID-related cuts and has found it very difficult to find full-time work again. He proposed that we consider hiring him as an IT consultant/property manager to create a customized website, network, and payment portal for all our rental properties. He also plans on improving our online advertising and social media presence. We are not computer savvy at all, so having him use his skills to potentially grow our rental investments sounds very nice. We plan on paying him a portion of our rental income for his services. It won't be much money, but just enough to keep him employed for the time being.

The main issue we are unsure about is whether we can hire him through our S Corp for helping us with our personal rental investments. Since we own the properties ourselves and they are not under the S Corp, would this be a problem? The S Corp is not taking in any income. Would it perhaps be better to pay the S Corp for consulting fees, and then have the S Corp hire him? We are not very knowledgeable about business structures so any advice would be very welcome.

Thank you for reading this long post!

Cheers,

Bob

Hello Jason,

Thanks for the reply. We don't have a CPA at the moment, but it sounds like a good idea to find one and I'll get on that. 

I like your idea of hiring him as an independent contractor! But what about the fact that the S Corp has no income? Should my wife and I pay the S Corp for consulting fees, and then have the S Corp pay him? 

Hello,

I have a question and was hoping someone who is knowledgeable about running businesses (especially S Corporations) might be able to give some advice. My wife and I are both retired and own an S Corp from when I used to work as a self-employed travel agent. We own several rental properties, none of which are under the S Corp though. But now we are considering hiring our son as an employee of the S Corp to help grow our rental investments. We are not sure if this is a good idea though because our S Corp was never used for anything involving real estate before.

To elaborate a bit, our son has been managing our rental properties for several years now (for free). He is a web developer but was laid off due to COVID-related cuts and has found it very difficult to find full-time work again. He proposed that we consider hiring him as an IT consultant/property manager to create a customized website, network, and payment portal for all our rental properties. He also plans on improving our online advertising and social media presence. We are not computer savvy at all, so having him use his skills to potentially grow our rental investments sounds very nice. We plan on paying him a portion of our rental income for his services. It won't be much money, but just enough to keep him employed for the time being.

The main issue we are unsure about is whether we can hire him as an employee through our S Corp for helping us with our personal rental investments. It would be preferable for him to be an employee rather than a freelancer. But since we own the properties ourselves and they are not under the S Corp, would this be a problem? As I’m retired now, the S Corp is not taking in any income and I was initially planning on closing it down. Would it perhaps be better to pay the S Corp for consulting fees, and then have the S Corp hire him as an employee? We are not very knowledgeable about business structures so any advice would be very welcome.

Thank you for reading this long post!

Bob

Hello,

I have a question and was hoping someone who is knowledgeable about running businesses (especially S Corporations) might be able to give some advice. My wife and I are both retired and own an S Corp from when I used to work as a self-employed travel agent. We own several rental properties, none of which are under the S Corp though. But now we are considering hiring our son as an employee of the S Corp to help grow our rental investments. We are not sure if this is a good idea though because our S Corp was never used for anything involving real estate before.

To elaborate a bit, our son has been managing our rental properties for several years now (for free). He is a web developer but was laid off due to COVID-related cuts and has found it very difficult to find full-time work again. He proposed that we consider hiring him as an IT consultant/property manager to create a customized website, network, and payment portal for all our rental properties. He also plans on improving our online advertising and social media presence. We are not computer savvy at all, so having him use his skills to potentially grow our rental investments sounds very nice. We plan on paying him a portion of our rental income for his services. It won't be much money, but just enough to keep him employed for the time being.

The main issue we are unsure about is whether we can hire him as an employee through our S Corp for helping us with our personal rental investments. It would be preferable for him to be an employee rather than a freelancer. But since we own the properties ourselves and they are not under the S Corp, would this be a problem? As I’m retired now, the S Corp is not taking in any income and I was initially planning on closing it down. Would it perhaps be better to pay the S Corp for consulting fees, and then have the S Corp hire him as an employee? We are not very knowledgeable about business structures so any advice would be very welcome.

Thank you for reading this long post!

Bob