JamesG1
Expert Alumni

Business & farm

You should be paying yourself reasonable compensation throughout the year and reporting the income on a W-2.

 

You would be remitting state and federal withholding taxes and filing Federal 941, 940, state equivalents and, possibly, state unemployment taxes.

 

Your state and local governments may have specific requirements that can vary quite a bit from state to state.

 

See this IRS publication.

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