Describe how families can use partnerships or S corporations to shift
income. Define the term constructive dividend.

I know wealthy families do this, but another expert will need to
supply details. For lower middle class families the schedual C can
shelter a little income with little start up cost nor risk of IRS
audit. Any method risks an audit if you try to shelter more than a few
thousand dollars. A partership even in the family can lead to hard
feelings even if skillfully organised.
 Before you decide I suggest you study the schedual C and instructions
and complete several hypothetical returns.  Neil