|
|
| *Ostroff, Fair and Company>>>Corporations |
Paying yourself in a LLC business? |
If you own an LLC as a S corp business, do you have to pay yourself a salary every month? Can you just take out profit share as income and only occasionally pay yourself a salary. (as an employee). I work at a company that helps small business get filed with the state. And the company will either be an S Corp or an LLC. Is there I separate company which is the S Corp being the parent company of the LLC? With both you have a Pass-through taxation which means you will not get taxed twice (personal and profits). With the LLC, I the ownership is the amount of interest you have in the company. With an S Corp you have shares. From what I believe you should be able to do both because of how the taxes are but I am not an accountant so that would be something you would have to confirm with them. I believe they should be the same. But remember a Corporation is not an LLC they are completely different. What's an "S corp business"? Are you an employee? If you are, and there's an employment contract, you should get monthly the salary stated in the contract, not just occasionally. Are you a shareholder? Even if you are, you can't just take out your profit share anytime you feel like it. Profit can only be distributed after tax as a dividend, and all shareholders get the same rate of dividends. And all this only after the proper meetings have been held and resolutions prepared. If you want a vehicle in which you can do anything you like, you would do better with a sole-proprietorship, but that doesn't give you limited liability, but you can't have everything:-) |
| Tags |
| Insurance Credit Corporations Other - Careers & Employment Technology Marketing & Sales Law & Legal |
Finance Categories--Copyright/IP Policy--Contact Webmaster |