How would you like to help your children develop a sense of responsibility and strong work ethic, while simultaneously letting them earn some money and save for college, all tax-free?

It’s possible. Kids fill our lives with joy, but they also fill our lives with tax benefits. Every child you claim as a dependent can lower your taxable income by $3,950. And the Child Tax Credit may save you another $1,000 per qualifying child if your income is less than $110,000/year.

But those tax benefits apply to all parents. There’s another way to lower your family’s taxes that only applies to business owners: hire your children to work for you.

As long as they’re doing legitimate work for your business, you can hire your child and pay them up to $6,300 per year tax-free. If they stay under this limit, they usually don’t even have to file a tax return. And you get to deduct their wages, which lowers your business’ taxable income.

For sole proprietorships and LLCs taxed as a partnership, you even get to avoid the payroll tax.

Using this strategy, you’ve effectively moved income from your high tax rate–or your business’ high tax rate–to your child’s tax rate, which is zero. And you’ve kept the money in the family.