Estimates only, for a sole proprietorship or single-member LLC treated as a disregarded entity. Assumes wages are paid for genuine work at a reasonable rate and that your child has no other income. Based on the 2026 federal standard deduction of $16,100 for a single filer. State income tax is not modelled. Minimum wage figures are current as of January 2026 and change annually — confirm with your state labor department. Hire the Kids is not a tax preparation or legal firm and this is not tax or legal advice. Review any structure with your own CPA.