I want to start a business where i want to show myself as an employeee and pay myself some salary.?

Question

What is the best possible way i can do this? I would be the sole person investing, that means the proprietor. Can i still pay myself salary? If not, in what cases can i pay myself salary if i am involved in a business?

Answer 1

In India people start private limited companies.

Answer 2

(Assuming US)

You will need to setup the company as a business, with yourself as an employee. There are several options for doing this.

You'd do well to pay a lawyer for 3 or 4 hours of his/her time to help you choose the best company type for your needs and to get you the paperwork. Not doing so could be dangerous. For example, if you do the wrong thing, your personal assets could be at risk.

But, yes, you can pay yourself a salary as an employee of the business. Be aware that will not be able to use any of the company's money on yourself, outside of salary and legit business expenses.

Answer 3

once you're a IRS C form corp, you will possibly desire to take any salary in earnings otherwise the IRS will see it as a dividend and double tax you. The corp gets taxed first, then you at something while paying dividends. you will possibly desire to be an S or LLC. consistent with probability that's distinctive as a CA C Corp. in case you will take funds, take it as a earnings. Geat getting in case you're creating wealth. not a undesirable concern to have. call a CPA.

Answer 4

If you incorporate, you can be listed as a paid employee. If you create the business as an LLC, the owner can only take "draws". The amount of draws you take is calculated against your profit at year end for taxes.

Answer 5

Yes, you have to incorporate. You need to see a lawyer to do all the paperwork and set everything up.