My friend has an S-Corp, he doesn't know if he needs to pay himself weekly and set it up with payroll taxes, or since its an S-Corp just make periodic tax payments. And also how does he account for taking revenue from the business to use in his personal life?
2007-01-17 03:44:45 · 2 answers · asked by billy9213 1 in Business & Finance ➔ Small Business
He should see an accountant. His company will probably qualify as a personal service corporation, which are somewhat of a spacial case when it comes to taxation.
2007-01-17 03:54:14 · answer #1 · answered by NC 7 · 0⤊ 0⤋
Your friend was smart to file as S-Corp. However, he can put himself on payroll which is legal and help lower is actual profit. However, he will still have to pay taxes on his PROFIT. By filing as an S-Corp it locks him into a self-employed tax bracket verses as a C-Corp which he will pay out the nose on taxes. Talk to a CPA that does corporation taxes and they should be able to steer him in the right direction.
2007-01-17 04:40:27 · answer #2 · answered by be happier own a pitbull 6 · 0⤊ 0⤋