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NEWBIE INVESTOR asked:
I’m a little confused about this. A CPA told me that i would have to pay myself on a W2… it didn’t make sense since i won’t have a steady stream of income coming in from the business or does that not matter??
Manuel
I’m a little confused about this. A CPA told me that i would have to pay myself on a W2… it didn’t make sense since i won’t have a steady stream of income coming in from the business or does that not matter??
Manuel
Comments
v b on 12 November, 2009 at 7:58 pm #
Talk to your CPA again.
An LLC is a disregarded entity. If you did not incorporate and you did not file a form 2553 or 8832, you are a sole proprietor and file a schedule C.
If you did incorporate or file a form, you are a corporation (S if you filed 2553, C otherwise) and corporations must pay a reasonable salary–even if there is no income. (Yes, you can show income on the W-2 even if the corporation has a loss.)
patriotfuelsystems on 14 November, 2009 at 7:11 am #
It does not matter, pay your self 1000 a month or 12000 at one time, just pay your self. I do not pay myself in the normal fashion. I have a huge home office, cell phone, internet, business line, and work car. which comes up to 900.00 a month that the business pays for. Keeping track of unrelated personal millage is a pain though.
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