Hello! I am a CPA here to assist you with your tax questions. My goal is to provide you with excellent service today.
Hi, Mike - the cash that is left over in your account can be used to reinvest in the business or pay expenses
You will not have to pay tax on that money again
You only pay tax on the profit of the business
so we would claim the "redistribution" on our personal taxes?
Does it matter that my wife is not a share holder?
No, you do not claim any redistribution on your personal taxes. You just pay tax on the profit of the business. What you do with that profit is up to you after that
No, it doesn't matter that your wife is not a shareholder - she can still earn a salary from the business.
and when I say "redistribution" i mean...leave it in the account to account for future payroll.
That's fine...you aren't taxed on that
this may be another question...but...when we each receive a salary...am I the only one paying self employment tax?
With an S Corp you don't pay self employment taxes. You pay payroll taxes (same thing) but you pay them both on your salary and your wife's salary
but the money that would be left over would not pay self emplo0yment on
That is correct. You only pay that tax on the salary
thank you for your help :)