You Have To Know This (If You Want To Hire Your Kids)
00:00:00.000 | If you are careful in areas where the substance is light, then you want
00:00:04.980 | to be really strong on procedure.
00:00:06.820 | Like if you're going to hire your kids, we want procedure to be really strong.
00:00:09.620 | Well, what would procedure be?
00:00:10.800 | That's all those technical formalities.
00:00:12.660 | That's I want an employment contract.
00:00:14.220 | I want an hours log.
00:00:15.160 | I want a calendar.
00:00:16.200 | I want to know exactly what they're doing.
00:00:17.860 | We want to actually issue a W2.
00:00:19.780 | So we have really strong procedure.
00:00:21.460 | The substance is a little light.
00:00:22.920 | They're your kids.
00:00:23.580 | We're like a little bit skeptical, but we've got all this proof that actually
00:00:26.860 | we've got some substance there where people tend to go wrong in these types
00:00:30.020 | of areas is they do neither the substance is light because you know what, it's my
00:00:33.200 | kid and I'm just kind of paying them to take out the trash and I would never
00:00:35.640 | actually pay whatever, $15,000 a year for someone to take out the trash.
00:00:40.080 | And then, Oh, by the way, I have no employment contract, no proof, nothing.
00:00:43.320 | Whereas that might hold in a third party arrangement, right?
00:00:46.460 | If I hired a random person off the street and paid them 20,000 a year, I may be fine
00:00:51.340 | with not having an employment contract.
00:00:52.960 | I may be fine with not having all these technicalities, but because there's no
00:00:56.320 | related party nature, it doesn't get the same scrutiny.