If I start a business I want to know if child support gets calculated from the income of my business or what my business pays me?
I don't have enough information to answer your question specifically since I don't know if you are the sole owner of the business and I don't have enough information on why your personal income would be different than the business income if you are being paid out of the business. The court would look at your financial affidavit which would be supported by your tax returns. Deductions for business expenses may be added back on to your income in certain circumstances, such as depreciation of automobiles and the like. There is no easy answer to your question without the financials to review.
What is considered "income" for purposes of calculating child support is defined by statute in the Child Support Guidelines, which provide as follows:
(11) “Gross income” means the average weekly earned and unearned income from all sources before deductions, including but not limited to the items listed in subparagraph (A) of this subdivision, but excluding the items listed in subparagraph (B) of this subdivision.
The gross income inclusions are:
(ii) hourly wages for regular, overtime and additional employment not to exceed 45 total paid
hours per week;
(iii) commissions, bonuses and tips;
(iv) profit sharing, deferred compensation and severance pay;
(v) tribal stipends and incentives;
(vi) employment perquisites and in-kind compensation (any basic maintenance or special need
such as food, shelter or transportation provided on a recurrent basis in lieu of or in addition
to salary or wages);
(vii) military personnel fringe benefit payments;
(viii) benefits received in place of earned income including, but not limited to, workers’
compensation benefits, unemployment insurance benefits, strike pay and disability insurance
(ix) veterans’ benefits;
(x) social security benefits (excluding Supplemental Security Income (SSI) for a parent or a
child), including dependency benefits on the earnings record of an insured parent that are
paid on behalf of a child whose support is being determined;
(xi) net proceeds from contractual agreements;
(xii) pension and retirement income;
(xiii) rental income after deduction of reasonable and necessary expenses;
(xiv) estate or trust income;
(xvi) interest, dividends and annuities;
(xvii) self-employment earnings, after deduction of all reasonable and necessary business
(xviii) alimony being paid by an individual who is not a party to the support determination;
(xix) adoption subsidy benefits received by the custodial parent for the child whose support is
(xx) lottery and gambling winnings, prizes and regularly recurring gifts (except as provided in
subparagraph (B)(v) of this subdivision); and
(xxi) education grants (including fellowships or subsidies, to the extent taxable as income under
the Internal Revenue Code).
The gross income exclusions are:
(i) support received on behalf of a child who is living in the home of the parent whose income is
(ii) SSI payments, including those received on behalf of a child who is living in the home of the
parent whose income is being determined;
(iii) federal, state and local public assistance grants;
(iv) earned income tax credit; and
(v) the income and regularly recurring contributions or gifts of a spouse or domestic partner.
I have always interpreted income for the purposes of child support as that earned by the legal entity required to pay such support. If your business is a legally registered entity that exists outside of you, then your income is what is counted. However, if you are asking whether any monies you receive outside of your paycheck from this entity should count toward the child support calculation figure, the answer is that just about everything you receive is considered income, not simply a paycheck. I do not believe a D/B/A entity is considered a legally registered business for the purposes of being treated as separate from the person(s) operating a D/B/A entity.
The answers provided in this forum by me and transmitted by users of this forum are not to be considered legally binding in any way, nor is there an intent to form an attorney client relationship. If further information is required, seek competent legal counsel.
most likely, as an employee of the LLC, you will be paid by the LLC, and thus your income will be your salary. But be careful: judges down your way do not take kindly to anyone trying to disguise or hid income or assets, and in the end, will make what they determine to be an equitable determination for the benefit of the child.
Years licensed, work experience, educationLegal community recognition
Peer endorsements, associations, awardsLegal thought leadership
Publications, speaking engagementsDiscipline