Do FMC's NEED a payroll provider? Other CPA's say you can simply cut a check to the child, and that would be considered "earned income" “other amounts received for personal services.” Does it differ if you created an FMC LLC, vs and FMC Sole Prop? I thought both would have been the same but am finding other CPA's say sole prop would have been a "cut the check" type of deal and therefore way cheaper.
i have a scop. so i set up a new Management llc just to be paying kids. luckily i also use Gusto,. now in order to do my payroll. do i have to create a new company for the management llc on gusto? or do i just pay the management llc as a contractor from my SCorp?
You will need a completely separate company account for the new management LLC. That will be the "employer" of your child. Your S-corp will fund the management LLC's bank account with just enough to cover the Gusto fee + payroll + employer payroll taxes.
Do FMC's NEED a payroll provider? Other CPA's say you can simply cut a check to the child, and that would be considered "earned income" “other amounts received for personal services.”
Does it differ if you created an FMC LLC, vs and FMC Sole Prop? I thought both would have been the same but am finding other CPA's say sole prop would have been a "cut the check" type of deal and therefore way cheaper.
i have a scop. so i set up a new Management llc just to be paying kids. luckily i also use Gusto,. now in order to do my payroll. do i have to create a new company for the management llc on gusto? or do i just pay the management llc as a contractor from my SCorp?
You will need a completely separate company account for the new management LLC. That will be the "employer" of your child. Your S-corp will fund the management LLC's bank account with just enough to cover the Gusto fee + payroll + employer payroll taxes.