Legally Pay Your Kids
How to Legally Pay Your Kids Through Your Business:A Tax-Savvy Strategy for Legacy Builders and Wealth ArchitectsIf you’re building a business with legacy in mind, it’s time to think beyond profits and portfolios. One of the most overlooked wealth-building strategies is also one of the most powerful: legally paying your children through your business.Done right, this move can reduce your taxable income, teach your kids financial literacy, and plant seeds of generational wealth—all while staying 100% compliant with IRS guidelines.Let’s break down how it works, why it matters, and how to do it the smart way. Why Pay Your Kids Through Your Business?• Tax Savings: Wages paid to your child are a deductible business expense. That means you lower your taxable income while shifting income to a lower tax bracket (your child’s).• Financial Education: Kids learn how to earn, save, and invest from a young age.• Legacy Building: You’re not just giving money—you’re transferring skills, mindset, and ownership.• Retirement Planning: Kids with earned income can contribute to Roth IRAs, setting them up for long-term growth. This isn’t a loophole—it’s a strategy rooted in tax code and legacy logic.