I have a simple question that I cannot see me to find an answer for anywhere….
How are distributions paid?
I have been paying myself a fair salary each month. When and how do I take distributions?
Monthly along with my salary?
End of year when all expenses and profits are calculated?
And do I just write myself a check for this amount?
Everything I read says that doe an Scorp, whatever is profit for the business at the end if the year is taxed on my individual return. Does this mean that I must pay this amount as distribution to myself?
I am confused about how much money should remain in the business account? If I pay myself distributions, I imagine there should still be money remaining in my business bank account. Is that amount taxed on my individual returns, or is the distribution taxed?
If anyone could explain this better, I’d really appreciate it! Thank you!
