Can Your Parents Make You Work in the Family Business

Quote:

---

Quoting jk

---

Well, ignoring the overtime requirements that would increase the amount drastically, dad is paying son $72,000 per year. I think that defeats most of your arguments all by itself.

in addition you have no idea of dads tax rate or how the business is structured which could radically change the situation.

as to not paying his son as a contractor; dad is violating some laws. I'm quite confident in that. Why would he care whether it legal to treat his son as an IC?

---

Of course he is not paying him for 22 hours a day. I am quite sure that he is only paying for 8.

My example works no matter how the business is structured. It works for a single member LLC, a Sole Proprietorship or an S-corp. It likely works even better for dad if he is in a partnership or a C-corp. If dad is making so little money that it does not benefit him tax wise to pay his son and pocket his son's net pay, then he would be better off making him work for no wage, since he is effectively doing that anyway.

Quote:

---

Quoting llworking

---

Of course he is not paying him for 22 hours a day. I am quite sure that he is only paying for 8.

My example works no matter how the business is structured. It works for a single member LLC, a Sole Proprietorship or an S-corp. It likely works even better for dad if he is in a partnership or a C-corp. If dad is making so little money that it does not benefit him tax wise to pay his son and pocket his son's net pay, then he would be better off making him work for no wage, since he is effectively doing that anyway.

---

Oh so now we are going to make assumptions (which themselves would clearly be illegal so why you objected to the father classifying the kid as an IC is odd). Why would you even pick 8 hours daily if you refuse to accept he is working 22 hour days and due 22 hours pay? Why not 6 hours, or 4 or 12 or any other number?

your model work with a c Corp? How about a c Corp where dad doesn't own any interest in the company? Why would dad even care in such a situstion?

seriously llworking, we have no idea how or even if this benefits dad regarding taxes. It may be as simple as this is what dad says is going to happen and that's it.

Quote:

---

Quoting jk

---

Oh so now we are going to make assumptions (which themselves would clearly be illegal so why you objected to the father classifying the kid as an IC is odd). Why would you even pick 8 hours daily if you refuse to accept he is working 22 hour days and due 22 hours pay? Why not 6 hours, or 4 or 12 or any other number?

your model work with a c Corp? How about a c Corp where dad doesn't own any interest in the company? Why would dad even care in such a situstion?

seriously llworking, we have no idea how or even if this benefits dad regarding taxes. It may be as simple as this is what dad says is going to happen and that's it.

---

Look, I do tax for a living. I have seen every kind of scam that people can pull, and I know how the tax brackets work. There is no business structure that exists where dad does not benefit from this tax wise, and there is virtually no income level where dad does not benefit. Between tax brackets and EIC one way or another dad is going to benefit.

And if dad does not actually own any share of the business? Then it gets far more complicated.

Seriously, this is a classic "cheat the system" scenario. The only thing a little bit different about this one is that dad has the added benefit of actually getting work from his son rather than just issuing a W2. In fact, its so classic that cbg could be right and the OP could be a troll.

Quote:

---

Quoting llworking

---

Look, I do tax for a living. I have seen every kind of scam that people can pull, and I know how the tax brackets work. There is no business structure that exists where dad does not benefit from this tax wise, and there is virtually no income level where dad does not benefit. Between tax brackets and EIC one way or another dad is going to benefit.

And if dad does not actually own any share of the business? Then it gets far more complicated.

Seriously, this is a classic "cheat the system" scenario. The only thing a little bit different about this one is that dad has the added benefit of actually getting work from his son rather than just issuing a W2. In fact, its so classic that cbg could be right and the OP could be a troll.

---

Great, you do taxes and you see the scams involved. While this may appear to be a tax scam, claiming it is is speculation. For all we know dad is nothing more than an employee of some big ass corporation and told to maximize the store profits and this was his method. It would provide no tax benefit to the father and unless there is some bonus system involved it would provide the father no financial benefit other than maybe allowing him to keep his job.

Anyway, op is likely a troll. Nobody that gets only 2 hours sleep per day will write as clearly as the op has.

Quote:

---

Quoting llworking

---

I would guess that a daily spanking would likely result in injuries sufficient to be considered to be abuse.

---

There are ways to spank your child and not have any injuries except for a sore behind. Trust me. I've done it.

Quote:

---

Quoting CourtClerk

---

There are ways to spank your child and not have any injuries except for a sore behind. Trust me. I've done it.

---

I would absolutely agree with that but not if it happened every day. I think that it would be incredibly difficult to spank a 15 year old daily, in a manner that would not result in bruises. Spankings on top of spankings would generally result in pretty serious bruising.

In addition, there is absolutely nothing you could say to convince me that YOU would spank a 15/16 year old.