If this is an S-corp, you can take money out in essentially three ways ///
Salary, Dividends, and withdrawing cntributed capital
IRS wants you to pay yourself a "reasonable" salary (so they can get that 941 money BUT ...
you can also pay yourself dividends
the salary you pay taxes on (1/2 of the SS&Medicare should be withheld) and the company pays the other 1/2
we paid salaries, since this is our first year, we did not earn much
but on the dividends, that's jut profit that's being distributed to you as a shareholder
right was getting to that
you do need to do the 941 on the salary pary ... but since it IS your first year and there are unknowns...? treating the 6000 as simply a dividen will fly
(sory for th typos)
the dividend will come through the K-1 to the 1040, and you'll just p[ay tax on that YOURSELF
(no payroll taxes)
ok, so we need to report the amount paid in checks and the rest would be dividents?. That's fine. Thanks
some peopl;e will (again in the first year) takie it ALL as dividends
that's the cleanest way to do ut ... IRA won't say you're trying to escapie the payroll taxes by calling it ALL dividends
Ah! ok. That's very helpfull
Now I feel better
You're very welcome ... Can I help with anything else?
That'll be all for the moment, very helpful, thank your
Great ... godd luck, sounds like you're off to a good start
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