Thanks.
Suppose my profit is 110k because I increased my salary to 50k now. I take a distribution of 85k, and a K1 of 25k.
This in turns is giving me,
- Salary of 50k + K1 of 25k = 75k Personal Income where as 75k will have a 15.3% employment tax.
- Distribution of 85k and this has no employment tax.
Is this right?
And is that 85K distribution consider as a ordinary income onto my personal return if i pay myself a reasonable Salary?
thanks
