Yes, you can gift money or shares of stock of your corporation to your children. If you gift more than $12,000 to any one child in a year then you would be required to file a gift tax return. However, you would not have to pay any gift tax until the total of your excess gifts (gifts to any one recipient in excess $12,000 in a year) over your lifetime exceed $1,000,000. You could also have your children (assuming they are older) perform services for the corporation and give them a W-2. Following is a link from the IRS website regarding employing children - http://www.irs.gov/businesses/small/article/0,,id=97748,00.html
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