Posted by chet on January 21, 2005 at 17:31:22:
make sure you pay your taxes, you can get in deep do-do over that.
for a couple 100 quickbooks and it payroll module to all the nasty calculations. It can be do by hand I have done it, but UGUH!
You really sould see your CPA to come up w/ a strategy. This one I pull a salary from for this reason, this one I run at a loss for that reason, etc.
how do you pay yourself in a LLC, S or C Corp? - Posted by Natalie
Posted by Natalie on January 21, 2005 at 14:33:38:
I have all 3 and they are just now starting to make a profit. Do I cut myself a check and cash it? Do I have to find a payroll services company that pays FICA, state & local taxes in advance etc. I should have enough write offs and the end of the year to declare nothing if only a small amount.
Any legal suggestions?
Thanks
Re: how do you pay yourself in a LLC, S or C Corp? - Posted by John K Haslach, CPA, MST
Posted by John K Haslach, CPA, MST on January 28, 2005 at 16:29:57:
A member of a LLC does not get salary, they get distributions. As a shareholder of an S Corporation, you can take distributions or salary. If you do not take salary, the IRS can treat you as if you had salary. As a shareholder of a C Corp, any distributions may be treated as dividends, not deductible to the corporation but taxable to the shareholder. You may also take salary. There are many variables and you should discuss them with a qualified CPA.