The new tax law makes hiring your kid a better idea than ever

Step 1. Hire Your Child in your LLC - Don't have an LLC? Form one!

The strategy has always been there, but the Tax Cuts and Jobs Act (TCJA) makes it a lot more viable or profitble to do so.

Tax advantages for your kid

Tax Cuts and Jobs Act (TCJA), your employee-child can use his or her standard deduction to shelter up to $12,000 of 2018 wages paid by your business from the federal income tax. For 2017, the standard deduction was only $6,350, but the TCJA nearly doubled it.
... as a sole proprietorship, ... a single-member LLC ... as a husband-wife partnership, or as an LLC ... means you can hire your under-age-18 child ... and his or her wages will be exempt from Social Security tax, Medicare tax, and federal unemployment (FUTA) tax ... until your employee-child reaches age 21.

Step 2: Put his / her earnings in a ROTH IRA

It is important to put away as much of his or her (your child's) earnings in a ROTH IRA as Possible.

The Roth IRA angle
The only tax-law requirement for your child to make annual Roth IRA contributions is having earned income for the year that at least equals what is contributed for that year.

for the 2018 tax year, a working child can contribute the lesser of: (1) his or her earned income or (2) $5,500. While the same $5,500 contribution limit applies equally to Roth IRAs and traditional deductible IRAs, the Roth option is usually better

Initially, put the ROTH IRA money in safe, short-term investments. But, after accumulating sufficient amounts,

Step 3. move the ROTH IRA account to a Self Directed IRA account to invest in long-term or leveraged investments such as precious metals, crypto or real estate with creative financing.

In 1994, I started this strategy for my daughters and in a little over a year's time, they jointly owned a duplex in Spring Branch of Texas - a red brick building. Although personal circumstances did not allow them to keep it for longer, but, the duplex was sold a few years later for a $38,000 profit (their cash invested was the closing fees for the attorney - a few hundred dollars).

Although I could not and will not disclose any more details, these are factual and my personal experience.

I am not a financial adviser and this is not financial advice implicit or explicit. I am only sharing my experience for consideration and evaluation of this tax law and how it might benefit you. I could not answer specific questions in public and do not do one on one coaching or mentoring.

Do NOT let your politics and bias blind you! For those who take FULL advantage of TCJA, it could very well Make Americans Rich Again (MARA)!

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Annette Hanshaw "Happy Days Are Here Again" (1929) LYRICS ARE HERE FOR SINGALONG