Sunday, November 30, 2014

One of the main concerns for small business owners is how they are going to get paid. There are certain rules that have to be followed depending on how your company is set up.. So let's break it down.

If you are a LLC or a sole proprietor the IRS  says you cannot pay yourself through payroll. However, if you’re a S corporation or C corporation you should pay yourself through payroll. If  LLC's and sole perpetrators can't pay themselves through payroll, what can you do? You should set up a payment schedule and write checks to a draw account. By cutting yourself a check, it will allow you to pay yourself the proper way.

According to Entrepreneur there are two main ways to figure out how much to pay yourself. You can either pay yourself as much as your worth or just enough to get by. Either way you should consult with your tax professional.

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