Does Uncle Sam Tax Kiddie Lemonade Stands?
And Myths about SIN (Canada) and SSN (US) Application Age
I'm sure many of us have done this or know someone who has, a child or children who have created a Lemonade Stand and sold Lemonade. However, this issue is definitely something to consider when your child or children run a stand. What about SIN (Canada)/SSN (US)? Well, the myth is that a person has to be a certain age to apply for these. Well, true it is best to wait until 14 since Companies in the First World Countries have to apply Child Labour Laws, however this does not mean you are unable to get one earlier since Children who do like making money will find ways to generate income for themselves such as the Lemonade Stand or raise funds for a charity, so on and so forth.
Few people, if any, think that a Lemonade Stand does not make enough money to be considered a business. Well, unfortunately, think again. In the eyes of the Government, a business is still a business regardless of age, revenue, and length of time of these Kiddie Lemonade Stands. As long as there is some sort of transaction between two people, Financial especially, the Government's Taxes still apply. However, here's the catch, Thrift Stores and Second Hand Stores Find ways around those stupid irritating tax laws. From Donations of some sort - (be it a Gift Card to a Family Hospital - Or Clothing Donated to an Organization's Christmas Gifting such as a church who may decide to put a Santa Clause Christmas Package together), A company approved charity which guests can help fund with loose change, Or stating the organization as a Non - Profit since the company or companies are gearing to a certain demographics which is mostly disadvantaged people.
People may think that SIN Numbers (Canada) and SSN (US) has a minimum age limit to apply. This Myth may have some if any truth to it. Especially since First World Countries have child safety and slavery laws when it comes to income. However, this does not mean your child is completely out of age range when qualifying for Social Insurance and Social Security Numbers which Governments can identify each individual with. Just means companies have age restrictions when it comes to hiring people of a certain age. If you think about Farming/Fisheries or any Family Owned Organizations, chances are Children's Rights either do not apply or is rarely if ever enforced.
A child who wishes to opens a stand will need to have a SIN or SSN since Tax Laws are still in effect for individual/s operating the lemonade stand. Should you wish to get the tax reduction of Lemonade Stands, its best to Open one yourself and hire your children, therefore, opens up any Tax Reduction Privileges such as waste, storage, damages, and money spent on Products. Simply I believe this method is way easier since you are training your Child's business senses without jeopardizing their futures by allowing them to unintentionally practice tax evasion.
When doing the process for the first time, it might feel like a pain in the ass hassle, it is. However, the more times you do this the less time the process takes since you already know what to do when supporting your children for the Future.
Kevin Miller
Note: Please Keep in Mind Garage Sales, Baby Sitting, Lawn Mowing, Dog Walking, Snow Shoveling are also part of this programme. Income is Income to the Government and would like to see it on Paper. They will decide the End result of Taxes paid will be necessary. Last time I read, $3000 was the taxless minimum. All countries and their States/Provinces are different when decisions are made.
Few people, if any, think that a Lemonade Stand does not make enough money to be considered a business. Well, unfortunately, think again. In the eyes of the Government, a business is still a business regardless of age, revenue, and length of time of these Kiddie Lemonade Stands. As long as there is some sort of transaction between two people, Financial especially, the Government's Taxes still apply. However, here's the catch, Thrift Stores and Second Hand Stores Find ways around those stupid irritating tax laws. From Donations of some sort - (be it a Gift Card to a Family Hospital - Or Clothing Donated to an Organization's Christmas Gifting such as a church who may decide to put a Santa Clause Christmas Package together), A company approved charity which guests can help fund with loose change, Or stating the organization as a Non - Profit since the company or companies are gearing to a certain demographics which is mostly disadvantaged people.
People may think that SIN Numbers (Canada) and SSN (US) has a minimum age limit to apply. This Myth may have some if any truth to it. Especially since First World Countries have child safety and slavery laws when it comes to income. However, this does not mean your child is completely out of age range when qualifying for Social Insurance and Social Security Numbers which Governments can identify each individual with. Just means companies have age restrictions when it comes to hiring people of a certain age. If you think about Farming/Fisheries or any Family Owned Organizations, chances are Children's Rights either do not apply or is rarely if ever enforced.
A child who wishes to opens a stand will need to have a SIN or SSN since Tax Laws are still in effect for individual/s operating the lemonade stand. Should you wish to get the tax reduction of Lemonade Stands, its best to Open one yourself and hire your children, therefore, opens up any Tax Reduction Privileges such as waste, storage, damages, and money spent on Products. Simply I believe this method is way easier since you are training your Child's business senses without jeopardizing their futures by allowing them to unintentionally practice tax evasion.
When doing the process for the first time, it might feel like a pain in the ass hassle, it is. However, the more times you do this the less time the process takes since you already know what to do when supporting your children for the Future.
Kevin Miller
Note: Please Keep in Mind Garage Sales, Baby Sitting, Lawn Mowing, Dog Walking, Snow Shoveling are also part of this programme. Income is Income to the Government and would like to see it on Paper. They will decide the End result of Taxes paid will be necessary. Last time I read, $3000 was the taxless minimum. All countries and their States/Provinces are different when decisions are made.
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