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Brown Borkowski & Morrow
  • Home
  • Firm Overview
    • Why Hire Us?
  • Our Team
    • Attorneys
      • Susan Leigh Brown
      • Thomas J. Borkowski, Jr.
      • Matthew N. Morrow
      • David James Eagles
      • Mary A. Mahoney
      • Sara Gorman Rajan
    • Support Staff
  • Practice Areas
    • Business & Corporate Law
    • Business Property Tax Appeals
    • Family Law
    • Estate Planning
    • Probate & Estate Administration
    • Trust Administration
    • Elder Law
    • Real Estate Law
    • Insurance Defense
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A GREAT LEGAL TEAM TO GUIDE YOU

Do I have to pay my children who work for the family business?

On Behalf of Brown Borkowski & Morrow | Feb 14, 2018 | Business & Corporate Law |

Lots of discretion

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Parents who own their businesses and employ their children have a lot of legal discretion when it comes to how they handle the situation. However, if you are in doubt about whether a practice is legal, it can a good idea to consult a lawyer. An accountant can also help you maximize the financial benefits from employing your children.

Type of business

You are on firmer ground if your business is a sole proprietorship or a partnership with your spouse. In fact, in these cases, you do not have to worry about Social Security or Medicare taxes for your children if you do pay them.

Reasons to pay

Not paying your children can be a good way to save money with your business, but there are compelling reasons to pay, too. For one thing, parents are allowed to use/control their minor children’s money in many cases, and paying your child could mean you get a tax break due to less income coming from business operations. You can still use the money you paid your child to help toward household expenses or the child’s college savings or car savings if that is what you and/or the child want.

Paying children also helps them learn about earning money, budgeting, saving and spending money. It can also be good for morale at the business, as children might be motivated to work better if they see a tangible reward. Of course, in some situations, it might not be financially feasible to pay your children.

Key commercial lease clauses Michigan business owners must know

On Behalf of Brown Borkowski & Morrow | Jun 6, 2025 | Real Estate Law

Leasing commercial space is an important step for your business. Before signing, make sure you fully understand what you are agreeing to. A commercial lease is a contract that can affect your establishment for years. The terms can increase costs, limit your options or...

No will? What parents should know about their children’s future

On Behalf of Brown Borkowski & Morrow | Jun 4, 2025 | Estate Planning

If something happens to you tomorrow, will your children be in good hands? Estate planning may sound like a lot of work, but more than anything, it is an act of love and responsibility. It is about protecting your children’s future, ensuring their best interests long...

Probate vs. non-probate assets: What is the difference?

On Behalf of Brown Borkowski & Morrow | Jun 2, 2025 | Estate Planning

When someone passes away in Michigan and there is no will in place, their representative settles their estate according to probate laws. An essential part of that process is understanding the difference between probate and non-probate assets. Knowing what does and...

What is Michigan’s law on tenant rights and eviction?

On Behalf of Brown Borkowski & Morrow | May 20, 2025 | Real Estate Law

If you're a tenant in Michigan, understanding your rights is essential. Tenant rights laws are designed to protect you from unfair treatment and ensure that landlords uphold their responsibilities. In Michigan, there are rules that govern the landlord-tenant...

What is a special needs trust?

On Behalf of Brown Borkowski & Morrow | May 16, 2025 | Estate Planning

A special needs trust helps ensure that your loved one with disabilities receives the support they need while protecting their eligibility for government benefits. These trusts are specifically designed to preserve access to programs like Medicaid or Supplemental...

How is business debt handled during a divorce?

On Behalf of Brown Borkowski & Morrow | Mar 21, 2025 | Family Law

Going through a divorce is challenging, especially when you own a business. Business debt can complicate the process, and understanding how you’ll handle it can make a difference in your settlement. If your business has debts, it’s important to know how those...

How can companies prevent IP theft in the digital world?

On Behalf of Brown Borkowski & Morrow | Mar 7, 2025 | Business & Corporate Law

Businesses use intellectual property (IP) to stay ahead of competitors. IP includes copyrights, trademarks, patents, and trade secrets. These protect creative work, brand names, inventions, and private business information. In today’s digital world, it is easier than...

How does the bundle of rights affect property ownership?

On Behalf of Brown Borkowski & Morrow | Feb 20, 2025 | Real Estate Law

Property ownership includes more than just having a physical structure or land. The "bundle of rights" is a legal concept that explains the different rights attached to real estate ownership. These rights allow owners to use, transfer, and control their property in...

How does Michigan law address parental relocation?

On Behalf of Brown Borkowski & Morrow | Feb 6, 2025 | Family Law

Parental relocation can be a challenging issue after a divorce or custody order. Michigan law has specific rules to ensure that moving does not negatively affect the child’s relationship with both parents. If you share custody and want to move, you must follow legal...

What should seniors know about Medicaid’s look-back period?

On Behalf of Brown Borkowski & Morrow | Jan 23, 2025 | Elder Law

Understanding Medicaid’s look-back period plays a critical role in planning for long-term care. This policy directly affects eligibility for financial assistance with nursing home expenses. Proper planning avoids costly mistakes and ensures access to necessary care....

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Recent Posts

  • Key commercial lease clauses Michigan business owners must know
  • No will? What parents should know about their children’s future
  • Probate vs. non-probate assets: What is the difference?
  • What is Michigan’s law on tenant rights and eviction?
  • What is a special needs trust?

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Brown Borkowski & Morrow
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Address

37887 W 12 Mile Road
Farmington Hills, MI 48331

Ph: 888-757-1681

Farmington Hills Law Office
Brown Borkowski & Morrow
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248-987-4040
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