Stay-at-home parents can claim Social Security spousal benefits even without work history, a protection designed to cover divorce or death. Small-business owners can add a non-working spouse to the board of directors for similar security, plus tax deductions on board meeting expenses.
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When Social Security was established well over 50 years ago or more, they put in this provision to protect the stay at home mom. Back in the day when it was more traditional, but now it's the stay at home dad or the stay at home mom. Either way, that spouse that's taking care of the household were not working full time. They may have a part time job, but they just didn't pay in enough. The government said we're going to give you a spousal benefit. Whether you die or get divorced or whatever, you're going to be okay. And so as a protection mechanism, you don't need to put them on payroll. If you're not going to put on payroll, what other things can you do? Well, the first one I love is the board of directors. The board of directors, board of advisors option. Every small business should be building a board of advisors board of directors. And it creates better asset protection, it helps you better manage your business and it creates write offs when you travel or dine with your board of directors and your spouse better be on it.
