If you run your business as an S corporation, you’re probably both a shareholder and an employee. Therefore, the company should pay you a salary for the work you do for the business, which is subject to payroll taxes as well as income tax withholding.
Do you pay to put your child or children in daycare or some other form of child care so you can work and earn a living for your family? If so, then you might be entitled to a tax credit when filing your tax return.
If you’re like most self-employed individuals you want tax relief. A simple tax planning idea for a sole proprietorship is to employ your children in the business.