Children as employees or contractors?

Your daughter can be your employee.  Setting her up as an hourly employee would be the best way to go.  Also, since she is just 14 years old, make sure that you are following your states child labor laws and not using any prohibited equipment for her age.

I have no answers, but I am interested in this topic. I am in Illinois. I have three kids that are very capable and could really benefit from learning how to charge and how to treat customers. Please chime in. If you have any words of wisdom. Bulletproof handyman, put out a video that got me really interested in it.

This is real advice. Their work does not need to be hourly. Having them in a video is enough to pay them as an employee. Talk to your CPA or Tax advisor. 

*Not a tax person - in CO, we have our son as an employee, up to $15k per year, without him having to pay federal or state taxes. Social Security and Medicare are deducted from his pay. 

*Not a cpa, and this is not tax advice But ask your cpa how to set this up. If you put her on as a w2 this may impact how much you can pay her per hour and max hours she can work. It could also impact your state unemployment rates. If she is hired as a model/marketing/photographer/influencer you may be able to write her a check outside of payroll, up to a certain limit tax free (I think its up to 15k in 2025) and can write a check 1x a year.  How you structure it depends on your entity type (LLC, S-Corp, Schedule E etc). Best to run it by a CPA to get the best tax benefits. 
Hope that helps! 

I'm new to all this, however my son in the state of MN has had his own buisness since he was 1 yr old. I sign has his representative and liability falls on me but it is his name and numbers for all tax purposes and funding. Then his older brother has been an employee of his for almost 4 yrs now. It teaches them ins and out of buisness and hopefully brings out great leadership skills as they go into the world.