Tagteam, thanks for the reply. The $150,000 was not the salary I would take, but the net income of the business itself. And yes, my actual salary does get me a W2.
In my scenario as a single member LLC taxes as an S - Corp, I have a business return to file and a personal return to file, correct? So are you saying my business would not be paying any tax on the $50,000 distribution I take because the tax liability is passing on to me? Is that right? If so, then how would I figure out the tax liability my business would owe on the $150,000 net profit the business made (after payroll, expenses, and the $50,000 distribution)?
