How best to structure a small business and pay the least taxes.
I’ve retired. In my spare time, I’m about to convert a hobby into a part-time business. I estimate that the business will have revenue of about $40k and will show a profit of about $20k per year. If I declared the income, I would pay a lot in taxes (fed, state, FICA) I don’t need the money and would like to route the profits to the college fund(s) of my six grandchildren. Although I do most of the work, they are all chipping in some time to help sort, package, and mail the product to customers. The product is printed material based on a copyright that I hold.
Thoughts?