A sole proprietor can hire his children if they are under 18 and not have to withhold social security, medicare or state disability and not have to pay unemployment taxes for them. If you have a single – member LLC, even though it is treated like a sole proprietor for income tax purposes, it is a separate entity for payroll tax purposes, so you have to withhold and pay all the above payroll taxes. Email me at bstonercpa@sbcglobal.net if you are thinking of turning your proprietorship into an LLC and have teanage kids that may work for you.
Brian’s Tax Musings
If you have some art, gold or silver, or other collectibles, and you sell them, don’t think the gains on these items will get the regular 15% (or in some cases, 0%) capital gains rates from the IRS. In fact, they can be taxed up to a max of 28%. Here is a link to the IRS rules on collectibles:http://www.irs.gov/taxtopics/tc409.htmlLet me know if you are thinking of selling something and we can figure out how much tax you may owe.Email me at bstonercpa@sbcglobal.net and we can talk about it.
Brian’s General Musings
Hey, today my semi-monthly e-newsletter comes out. It talks about the art of the upsell and also gives props to two professionals I work with and trust. You can sign up for my newletter on my website www.briantstonercpa.com or email me with a request to joi n at bstonercpa@sbcglobal.net and I will add you to the list of people who get my newsletter. The price is right (free) and you can get something to think about twice a month.