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Is the business income used to calculate my child support?
Any income that the business earned passes through to you as the owner of the S Corp so it would be included in your "income" for calculation of child support. Income used in Texas for child support includes the following:
So yes, that income would be included along with any other income or benefits that you receive in total and go into the child support calculator.
Let me clarify. If you are the owner of the company, then while you may be a W2 employee, you are also the person that any net profit funnels down to. So if the company sells $200K of X and has $150K in expenses including product costs and wages, that leaves $50K in profit (i.e. income). That money passes through to the owner of the Sub S Corp under IRS rules. So it really isn't the income that is attributed to you, but rather the profits over and above any expenses.
So if you are being paid a salary from the company, then you as the owner also get the profits from the company and that is considered income to you and would factor into any child support calculation.
Yes, that is one of the main reasons someone starts up a Sub S....they get the corporate protection from personal liability but they are taxed on any profits at their personal rate, not a corporate rate, because all the profits "pass through" the Sub S down to the owner directly.
So the owner is protected from liability while only paying taxes at their lower personal rate.
But it wouldn't affect any child support calculation by having the Sub S because whether you pay yourself $50K and the profits of $50K come from the Sub S or whether you pay yourself $100K and there are no profits, the same $100K is considered income to you regardless.