Why Business Owners Should Consider Hiring Their Kids

Hiring your kids isn’t just smart parenting—it’s a powerful tax strategy. In this post, learn how to save taxes and teach real-life finance at home.

As a parent and business owner, you wear a lot of hats—and often juggle even more receipts. Between making sales, managing marketing, and keeping clients happy, the idea of adding your kids to the mix might sound overwhelming at first.

But what if I told you that hiring your kids could lower your tax bill, build financial literacy at home, and prepare them to manage money like a pro—all at the same time?

Welcome to the smart, legal, and family-focused strategy I teach in my Family Finance Fun program. It’s one of the most underused tax moves for small business owners—and it just might change how you think about money, parenting, and legacy.

The IRS Actually Allows It—With Rules

First, let’s clear this up: Yes, you can legally hire your children to work in your business. As long as the work is legitimate and age-appropriate, and you’re following the proper payroll rules, the IRS is fully on board.

Kids under 18 who work for a parent’s sole proprietorship or a partnership where both parents are partners may even be exempt from Social Security and Medicare taxes—a huge win. You can pay them up to the standard deduction limit (currently $14,600 in 2024) without them owing federal income tax on it. And because it’s a business expense for you, it lowers your taxable income.

That’s not just good accounting. That’s legacy-level thinking.

Teach Financial Skills the Right Way—By Doing

It’s one thing to tell kids about saving, budgeting, or investing. It’s another thing entirely to let them earn money, track it, report it, and manage it.

That’s where the Family Finance Fun program shines. We help you turn everyday financial decisions—like organizing receipts or setting spending goals—into hands-on learning moments. We even show parents how to assign kids age-appropriate roles that truly help the business while teaching valuable life skills.

Older kids can be trained to:

Categorize business expenses using accounting software or apps.
Record mileage or inventory.
Organize receipts for bookkeeping.
Maintain a weekly or monthly spending report.

These tasks are made even easier using my ABC Setup System—a simple, swipe-based way to manage business finances that’s so intuitive even teens can do it. (And many parents tell me their kids love being the “money boss” for the family business.)

Save on Taxes, Save on Bookkeeping

Here’s the bonus most people don’t think about: when your kid is handling the basics using our system, your CPA or bookkeeper doesn’t have to. That means less time billed and more clarity in your books.

You get:

A trained helper at home.
Reduced tax liability.
Real business support.
A child who’s learning the value of work, money, and ownership.

Honestly? That’s the kind of “extra credit” no school assignment can match.

Build Generational Wealth—One Paycheck at a Time

Hiring your child isn’t just a tax move. It’s a mindset shift. It says:

“You belong at the table.”

It teaches kids how money flows, how businesses operate, and most importantly—how to own their role in building wealth.

Whether they’re helping with simple tasks now or preparing to run their own business one day, giving them early access to financial literacy changes everything.

And that’s exactly what we focus on in Family Finance Fun—making finances a team sport, not just another solo hustle for mom or dad.

Want to Start Paying Your Kids the Smart Way?

Learn the right way to put your child on payroll and start training them to support your business using our ABC Setup System.

We’ll show you how to make it official, educational, and completely IRS-approved.

[Click here to explore Family Finance Fun]

Because the family that pays together, saves—and grows—together.

No Business In Place? No problem! In this Workshop I talk about a BEGINNER strategy that every parent can use!

[Click here to watch the workshop replay]

Categories: : Business Tax Strategies, Family Business