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I recently started my business, I used my personal credit…

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I recently started my...

I recently started my business, I used my personal credit card to pay for payroll and labor service. Is it best to pay my credit card bill with a company check or have my company pay me then I pay the bill personally from my checking account?

Accountant's Assistant: The Expert will know how to help. Is there anything else important you think the Expert should know?

My company is an S Corp.

Submitted: 8 months ago.Category: Tax
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9/28/2017
Tax Professional: Chad EA, CFP ®, CERTIFIED FINANCIAL PLANNER TM, Professional replied 8 months ago
Chad EA, CFP ®
Chad EA, CFP ®, CERTIFIED FINANCIAL PLANNER TM, Professional
Category: Tax
Satisfied Customers: 2,504
Experience: Federally licensed IRS Enrolled Agent, Certified Financial Planner (R), MBA
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Welcome to JustAnswer. My name is ***** ***** I will be able to assist you today.

It is best to have your company directly pay the credit card and record the payment as an expense to the company.

As a S Corp all profits and deductions will flow through to the shareholders. Therefore, as long as the expense is ordinary and necessary, such as payroll and labor services you will be able to deduct the expense.

If you have any follow up questions please let me know!

Thank you!

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Tax Professional: Chad EA, CFP ®, CERTIFIED FINANCIAL PLANNER TM, Professional replied 8 months ago

If you have any further questions please let me know.

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