Paying kids through a-corp

Hi again-
You guys often talk about setting up a family management co to pay kids from an s-corp but I’ve never heard you explain why it’s necessary. Is it illegal to pay my kids through the s-corp? If i only pay them $5000 per year, is it worth setting up a management company?

Answered on todays show. March 8th, 2023,. Thanks for participating!!! Mark and Mat