Great question. In scorps you simply take a share of company profit as your payment. and can pay yourself this way. I recommend use a payroll company. Quickbooks is of course my favorite
- Salary, your wages or reasonable compensation. This is considered taxable income to the payee by the IRS.
- Distributions, the earnings that are paid as distributions to you as the owner. These are not employee wages and are not taxed as self-employment income in an S-corporation.
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