1. Pay your child $5,000 per year for the right to use his photograph in your business advertising.
     a. Have professional pictures taken.

2. You get a business deduction of $5,000 per year.
    a. If you are a sole proprietorship, you do not need to pay FICA or FUTA if you child is under 16 years of age.
    b. If you are a corporation, you do need to pay FICA and FUTA.

3. Your child does not have to pay taxes on the first $5,000 per year of income.
    a. Your child is eligible to open an IRA.
    b. Your child can put $4,000 of income per year into the IRA, which would reduce the taxable income to only $1,000. So, in effect, you can pay $9,000 per year, and still
        no one pays taxes.

4. If the child establishes a Self Directed IRA, then the IRA can buy business equipment
    that it then rents to you.
    a. The income from the rental is not taxed to anyone.
    b. Your business is contributing additional money to your child’s IRA, and this is rent that you would have been paying anyway. In this way, you are legally putting additional money into the IRA beyond the normal $4,000 per year limit.

5. You can repeat this process every year. Even without the Self Directed IRA aspects, if you begin hiring your child at age 5, by the time he reaches 16, you will have contributed $44,000. Because the money is in a tax-deferred IRA, your child will
     have $66,851 in his IRA by the time he is 17.