is this a legitimate investment and tax strategy?

[criticalthinker]

What is the name of your state (only U.S. law)? MA

Can a married couple create an LLC (of which they'd be members) that will employ other relatives and family members (as hourly employees), and fund its capital account with income from their W2 jobs in a way that is beneficial from a personal income tax perspective? I know they can fund the LLC, but I have no idea if there's a tax advantage in doing so.

Further, if there is no conflict of interest with the couple's current employers, and both are commissioned salespeople, is there any other legal reason why they could not hire the services of their company to assist them in their roles, and write off that expense?

I should mention that while they would be the company's 1st clients, the hope is that eventually the business would be able to assist other salespeople like themselves.

Any insight would be appreciated.

Kind regards,

CT

 

[LdiJ]

What is the name of your state (only U.S. law)? MA

Can a married couple create an LLC (of which they'd be members) that will employ other relatives and family members (as hourly employees), and fund its capital account with income from their W2 jobs in a way that is beneficial from a personal income tax perspective? I know they can fund the LLC, but I have no idea if there's a tax advantage in doing so.

Further, if there is no conflict of interest with the couple's current employers, and both are commissioned salespeople, is there any other legal reason why they could not hire the services of their company to assist them in their roles, and write off that expense?

I should mention that while they would be the company's 1st clients, the hope is that eventually the business would be able to assist other salespeople like themselves.

Any insight would be appreciated.

Kind regards,

CT

I cannot see any benefit from such a scheme. How would the LLC "assist them in their roles?"