
There’s just something so attractive about being able to carry things around in a backpack. Especially when they’re things that you never expected to carry around in a backpack — be it a cooler that’s also a chair that’s also a backpack, a foldable scooter or a bike. And while the Kit Bike isn’t the first bike in a bag we’ve shown you (remember Sada?), it is the only one we’ve seen that breaks down to such a wee size.
Concepted by Indian design company Lucid, the Kit Bike disassembles into 21 pieces, giving you the ease to travel with your bike… even when you’re not riding it. Imagine getting on the train without nearly knocking over every poor soul within a three-foot radius, taking your two wheels on a jet plane to Portland (so you can confirm or deny if it really is the most bikeable city) or even hauling it up to your sixth-floor studio walkup (not to mention storing it there).
Not only is the sleek, minimal white frame easy on eyes, but the circular leather backpack (circular to accommodate the wheels, in case that wasn’t clear) that it goes in is something we’d carry whether there was a bike in it or not.
By now you’re probably like, “Yeah, sure, that sounds great. But, 21 pieces?! It’s too many to put together quickly.” Well, allow the Lucid designers to blow your minds momentarily. The hollow aluminium bike twists and locks together, all sans tools and from one side of the bike. So prop it against a wall and forget about shimmying from side to side to get it ready to hit the road. It’s no wonder that Lucid won a Red Dot Design Award for it earlier this month.
We don’t need to tell you that gas prices are sky high and that, with more people in the world, city streets and freeways are more congested with cars, which is why we’re seeing so many bike innovations popping up on our monitors. Whether it’s Harley Davidson going electric and carbon-fiber smartbikes or rental services for wee ones and smart locks for your sweet ride, there are ideas wheeling around the cycling world that we want to hitch a ride on.
The Kit Bike is still in its concept phase, and there are no plans to put it into production yet. We’re taking it upon ourselves to send daily emails to Lucid Design to start their Kickstarter campaign already. We think you should do the same.
How sweet do you think the Kit Bike is? Let us know in the comments below!
(h/t Dezeen)
Welcome to Selfmade Finance School, our new money series with Block Advisors to help small business owners with their tax, bookkeeping, and payroll needs year-round. This week, we explore the tax implications of bringing family members into your business.
The question for today is this: Does hiring your family members make sense for your business? Let me be clear. This is not a piece about whether hiring your family members makes sense for your relationships with those family members. As someone who is part of a family business, I could fill up a lot more than 600 words on my opinions about that. For today's purposes, we focus on whether it makes sense from an overall "good business and tax implication" perspective. As it turns out, there is a decent amount of tax nuance when it comes to employing your family. Let's break it down based on relationship to the employee:
You X Ventures for Unsplash
Spouses Who Are In Business Together
Personally, if I had to be in business with my husband, it would not go well. However, many couples build viable, strong businesses together and I say, good for them! Depending on how you have your business entity structured, it will make a big difference on the tax treatment of you and your spouse working as partners. Because a business jointly owned and operated by a married couple is generally treated as a partnership for Federal tax purposes, the spouses must comply with filing and record keeping requirements imposed on partnerships and their partners. The election to file two Schedule C (Form 1040) forms, (one for each spouse) permits certain married co-owners to avoid filing partnership returns, provided that each spouse separately reports a share of all the businesses' items of income, gain, loss, deduction, and credit. Under the election, both spouses will be subject to self-employment tax and on net earnings from self-employment and receive credit for Social Security earnings.
One Spouse Employs Another
If you have a dynamic where your spouse is an employee of your business, then your spouse's wages are subject to income tax withholding, Social Security and Medicare taxes. If you are self-employed (not a corporation or a partnership), your spouse's pay does not have to be included in your federal unemployment tax account (FUTA) contributions and payments. However, if your business is a corporation or a partnership you must include that spouse's pay in your unemployment tax contribution calculation.
Kobu Agency for Unsplash
You Employ Your Child
First, let's be clear. I work in my family business, but I am an adult, so I am treated just like a normal employee. However, if you, for example, run a family restaurant and want to hire your children under 18 to work for you, there are some tax benefits. But first, you should check with your state for rules on how many hours minors can work (in non-agricultural jobs) and reference the Fair Labor Standards Act for information on limitations on the kinds of work children can perform.
"This is an often overlooked or under-utilized strategy. Paying your children for true services they provide in your business can be a powerful tax-saving tool," says Cathi Reed, Block Advisors Regional Director. "If you are a sole-proprietorship or single member LLC, and the child is less than 18 years of age, the business is not required to withhold FICA or payroll taxes. The child can use his or her standard deduction against income you pay."
You Hire Your Parent
Oh dear. If you are brave enough to do this, know that you will need to pay Social Security and Medicare taxes on your parent's wages and make the appropriate withholdings, but you don't have to pay unemployment taxes. Now all you have to do is convince your parent that you are the boss. Have fun with that!
Is Hiring Family Members Worth It For The Tax Benefits?
"There are some positive tax advantages to hiring family members. It's important to treat a family member like any other employee. Hiring your children can result in substantial savings for businesses. Make sure your child has real, age-appropriate work to do and a reasonable pay rate, comparable to other employees. Consult with a Block Advisors small business certified tax pro to ensure that you are complying with all requirements," advises Reed. "Block Advisors, a team within H&R Block, is dedicated to meeting the tax, bookkeeping and payroll needs of small business owners year-round. To start working with the tax experts at Block Advisors, visit blockadvisors.com."
In my opinion, you should not hire a family member solely because of the tax benefits. You should always hire based on whether that person is right for the job and keep in mind how this hire could materially impact your relationship with that person and others in your family. Finally, as I mentioned, make sure you have a tax professional on your team when making these determinations. As you can see, things can get a little tricky!
*All details were sourced from IRS.gov and blockadvisors.com
The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra Investment Services, LLC or Kestra Advisory Services, LLC. This is for general information only and is not intended to provide specific investment advice or recommendations for any individual. It is suggested that you consult your financial professional, attorney, or tax advisor with regards to your individual situation. Comments concerning the past performance are not intended to be forward looking and should not be viewed as an indication of future results. Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. O'Keeffe Financial Partners and any other entity listed herein is not affiliated with Kestra IS or Kestra AS Investor Disclosures: https://bit.ly/KF-Disclosures