Rewire
Senior Member
- Location
- Lake of the Ozarks
how do you take your comensation as owner? Do you draw a weekly check and then a percent of profit at years end ?
owner pay
- Thread starter Rewire
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Rewire
Senior Member
- Location
- Lake of the Ozarks
we just changed our status to an S-corp so that I can draw a weekly paycheck through our payrole service my pay has witholding but it is at a lower rate than if I just took weekly draws and paid the tax end of year . Accountant explained it a lot better and recommended it. I will pay myself bonuses throughout the year and the will be taxed as pay so weshould have very little"profit" that will be taxed.
- Location
- Windsor, CO NEC: 2017
- Occupation
- Hospital Master Electrician
If you've got this all figured out, are you asking to hear your head rattle, or...?
Rewire
Senior Member
- Location
- Lake of the Ozarks
How do you do it in your business? Do you do the S-corp? If so did it work out or would you recommend another avenue. Please comment on your method.
- Location
- Massachusetts
Our accountant wants us to go to LLC as he explained it S corp is fine if you are making the big bucks, and have a huge company, something we may dream of but most likely never reach, every accountant that recommended the s corp also had bigger billing fees, botton line every business is digfferent , and your personal income will differ, if you are making personal income, over 15 to 20K a month, then you may want to look at corp set up, again every situation is different, we were set up wrong for years and the accountant never told up why would he shoot his own foot off, we never made that much income to justify anything more then an LLC so good luck
I think his point was which way to go
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Rewire
Senior Member
- Location
- Lake of the Ozarks
information, when you run a business getting feedback from other business owners on various aspects of running the business can be very helpful in making decisions on changing direction in the business.
Fulthrotl
~Autocorrect is My Worst Enema.~
- Occupation
- E
calif. won't permit a LLC on a contractors license.
you need to run a full corporation or a sole proprietorship.
as i'm a one man band, a corporation doesn't really
do me any advantage, and provides another level of
administrative overhead. it really doesn't offer any protection
of assets that i can't get by simply arranging my personal
assets intelligently.
readydave8
re member
- Location
- Clarkesville, Georgia
- Occupation
- electrician
Sole proprieter, I pay for things I need as I go, when money piles up in checking account I buy things I want (mostly tools and dwellings, so luckily creates future return, occasional splurge), I'm sure this is not helpful information but is an honest answer to your question.
petersonra
Senior Member
- Location
- Northern illinois
- Occupation
- Semi-retired engineer
most people do not understand that basically the subchapter S thing has nothing to do with the type of incorporation it is something from the federal tax code that allows incorporated businesses that would otherwise be taxed as corporations to pass through the tax liability to the owner(s) who then owe the taxes so that they are not taxed both personally and corporately.
there are some tests you have to pass such as having less than 100 shareholders, but basically any corporation or LLC can elect to be taxed under subchapter S.
there are some tests you have to pass such as having less than 100 shareholders, but basically any corporation or LLC can elect to be taxed under subchapter S.
Yup, every state has different laws, I made the mistake of going INC, and I pay min tax of $500 NJ State Tax every year even if I don't make a penny.
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