You should talk to your accountant about children's ownership of a business. There are actually several tax complications depending on what they do in the business and what entity type is involved. It may also complicate things if financial aid will be sought for college. As long as you know what you are getting into, it could be a great learning experience.
Great answer from dublincpa.
I have said it before and will repeat it again. By talking to YOUR accountant, you will get the personal answer that you need.
Your accountant should know you, you goals and expectations and your family plans.
Your accountant should give you expert advice on your children (teenagers), financial aid and your future retirement plans.
Talk to him or her before tax season
I am in the process of starting my second business.
At the moment it is a family business, just me and my wife and maybe the kids.
What are your thoughts on giving majority ownership to my wife, so that in the future we can benefit from preferential treatment in loan applications, and set asides from retailers?
The other question I have is what about giving my two teenage kids a small stake in the company, as a learning excercise.
Any tax complications associated with that?