How to Pay Yourself in an S Corporation | Reasonable Salary S Corp

[@YoungMulahBB]

this video was exactly what i needed to know! First year as an LLC with S corp election and didnt know how it all worked and how to pay myself. Thanks!

[@SarahRaw]

I wish I would have seen your video before wasting a ton of money joining Dow Jane which is really elementary budgeting and not business owner specific - this is super simplified, understandable! Thank you!

[@chadtaxpreparationservices167]

I love S-Corps. One of my specialties. I've got many expat clients who get even greater benefits because they are able to utilize the foreign earned income exclusion and get to shave off income tax. The payroll aspect is also simplified greatly.

[@allupinyobiz]

Great tip with the foreign earned income exclusion!👌 Thanks for the comment!

[@reinaldodeschamps3851]

Another excellent explanation. Congrats. You're awesome

[@Mandam32]

Thank you, cant stop looking at CAT MOM

[@ScrapPalletMan]

I need this video NOW lol. But seriously, I am looking forward to it.

[@post107]

I enjoyed the video, lots of good information. I will look forward to more of them

[@Franck-v7h]

Thanks. very helpful

[@BrenttheGreat]

I’ve built my company so it runs itself. If I hired someone to do my job they literally wouldn’t earn anything because the business runs itself. As a result it stinks to have to pay myself quite a bit to avoid an audit.

[@mauraramil]

Very clear explanation. This video cleared a number of my questions. Thank you!

[@drewmurphy2796]

When you take a distribution how is the taxed?

[@luispardo3323]

Superb explanation. Thank you so much for making it so much easier to understand such a complicated subject.

[@daedalusadder2555]

appreciate the video.. as i watched this I made the separate accounts in real time so thanks

[@evenichols8431]

EXCELLENT Content. Thank you.

[@RodMuniz1981]

I loved all your explanation, you're awesome!!!! thank you!

[@jujubee90275]

Was so helpful thanks

[@tysessoms]

Thank you so much for this

[@beatricenalwoga9482]

Great video thanks for sharing your expertise

[@mischellenettles4326]

Very helpful info. Thank you so much💜

[@percyastronautstatus.8780]

Correction ....your not paying 24 percent on the entire 100k....10 percent for the first 10k....12 percent from 10 to 40k, 24 percent from 40k to 86k....and so on....it's a progressive tax rate ...taking 39k out of a 100 k would cause us to protest ...

[@BigpapaJuan]

Thank you, awesome explanation.

[@jolaiz35]

Thank you for a very informative description of how much to determine a salary. You gave me an idea for another income stream for my Bookkeeping business. One of my former careers was a Senior Compensation Analyst. One of my skill sets was creating job descriptions and determining how much to pay the job description position. I can offer that service to clients. Thank you!

[@gummibearscrime]

Love the shirt! Came here for S corp Info And found a fellow Cat mom lol

[@markstucker1214]

Thank you for this excellent video. Sure Payroll is who I use and I am very happy

[@baltaleon1626]

Great video

[@allupinyobiz]

Thank you so much for watching!

[@SpinalAce64]

i paused at 33 seconds and i just anna say you have a really nice smile and good videos

[@vilmaschmitz1459]

Excellent information in regards to the tax advantages between a LLC and LLC - S Corp

[@demsaretherealvirus2153]

These are great videos super informative and concise thank you for doing these

[@MrMarkwill62]

I wish I would have known about Novo before, I had to do such a run-a-road to open a business account, having to make a in person appointment, with all the appointments a week away

[@chloemichelle7335]

So helpful, thank you so much!

[@MasterDelegatorPodcast]

What a great video!

[@silver9483]

Thank you gorgeous. I watched most of ur vids by now and used a lot of ur info to ultimately plan and form my llc a few weeks ago. Ur awesome!

[@eo3504]

Silly question regarding the payment to yourself ... Are you paying yourself once a month based on the income from the following month, after your books are closed? In essence, we (owner) do not have to pay ourselves a specific hourly rate or specific salary?

[@Insuranceexamprep]

You can do this

[@lindaoliver7016]

Great information thank you 😊

[@e60060]

Thank you for all this great information.

[@irshasher3602]

Xero integrates with Gusto for payroll. I use both in my consulting business for tax and accounting.

[@allupinyobiz]

Good to know, thank you for sharing!

[@Feelionics]

It's not annoying on your payroll or bookkeeping back end to constantly change your salary depending on the PNL data on a month-to-month basis?

[@MrRcecil]

Thanks! It absolutely answered my question!

[@richardalaziz9481]

Great information! Very clear to understand. Thank you

[@allupinyobiz]

That's what I like to hear! Thanks so much for watching!

[@jessedelgadillo194]

Thankyou thankyou!!

[@thatnon-competelawyer5313]

Great detailed but simple explanation!

[@allupinyobiz]

Thank you so much!! What praise! 🙏

[@bhn028]

Thank you!

[@adriennekennedy2506]

What if my business didn't pay me. I was a start up last year

[@sincerelyjerry244]

Thank you

[@ListenAnObserve]

what if decide not to pay myself and just let it sit in my business? so basically invest and keep financing my business as an s corp is that possible or what do i need to look out for?

[@survivor2.029]

good question! I wonder the same.

[@j54911]

You still owe taxes on all the profits wether or not you take it out fo the business,

[@ShannanEJohnson]

Bless you.

[@gentrymackins1493]

Thank you, Ms Durham. You are magnificent!

[@yusefandrewiley]

Great information! My question is that, I have an S Corp but I’m definitely paying myself too much on a W2, is it possible to pay my distribution portion to myself as an LLC? Which means that I would receive a W2 and a 1099 at the end of the year.

[@JToluka15]

I have a “friend” who is owner of a S Corp and He does something similar to what you are asking. He pays himself thru W2 a low but reasonable salary and gets and extra check from Shareholders Distributions.

[@tallen2549]

Hello your great

[@aznnp77]

I'm watching this video cuz I need to know which form to issue myself (the owner) for the S-Corp to complete personal taxes. W-2, 1099-Misc, or what? Hopefully it answers my question. I pray it does cuz I'm running out of time. I know I pay myself a reasonable salary, then dividends/distributions, I know about the 60/40 rule. I know the tax benefits. But I need to know the form.

[@j54911]

She said it at minute 17:24. It’s a p

[@j54911]

It’s Form 1120-S

[@andynunez6902]

Thank you so much for this video!! Very easy to follow, understanding & informative. I’m now definitely looking forward to consider turning my LLC into a S-Corp in the future. Much appreciated.

[@percyastronautstatus.8780]

A HOT 🔥 lawyer ...

[@sorino3126]

So... you're saving on the taxes but need to pay for a payroll company and business lawyer, and cpa and possibly wc insurance.... how do you still save money then?

[@DericAnslum]

...easy...you don't do it until the numbers make it advantageous...

[@aznnp77]

Wow, can't believe I got my answer in the first 4 minutes! Nice. unfortunately I didn't withhold anything all year. I was aware that I would owe those taxes with my return plus interest. And when i try to generate a W2 it says Im raising red flags by putting 0 in withholding. Is there another way to do it? Like a 1099-MISC or something?

[@TommyBlazeHD]

Question: Does it depend on how successful your business is regarding the amount of taxes you pay? This would weigh heavily when deciding weather to file as a S-Corp, or Sole Proprietor when trying to avoid a heavier tax rate.

[@baileyandila5014]

sick info super babe////

[@laurasacher8296]

what do you recommend using for payroll? I have used gusto before and loved it, but it's a little pricey.

[@LynxStarAuto]

If you have QB desktop pro, it includes a free year of Payroll if you update to the latest version every year. But honestly? If you file as an S Corp, payroll is a place you do not want to skimp on.

[@stylzkeyz]

What about the Age of your business account and with Novo? Is it held in the same esteem as say a NFCU Business account not considering loans or credit card products?

[@kingdavidbarron8737]

🙂thank you ..

[@robertstevens4011]

can you post up 1st year report with or without sales

[@manuvns]

If I bill my client 100$ what is the reasonable salary for the hour 50$ ?

[@benjiebarker]

I noticed that with an s corp you pay less social security taxes…will that decrease the amount of SS benefits you receive when you retire?

[@e60060]

How much would you estimate how much an accountant will cost each month to do my payroll and accounting?

[@allupinyobiz]

A few hundred bucks probably. I pay $200/mo, accounting/bookkeeping/payroll for me +1 employee.

[@lloydfreeman1203]

Great material but my company will be investing for the long-term over one year and my money will be derived through those Investments how do I set that up so that my income from those long-term Investments pay me through dividends at a cheaper rate than income

[@edmcclendon9588]

I need the same information as well.

[@dankelly]

Can you leave money in an LLC with S Corp election, or do you have to distribute all profits to the member(s) and thus pay taxes on it?

[@melvinjames1077]

I haven’t seen A situation like mine yet ! I sold the business assets I no longer have a business, except as a corporation that is still open to receive payments from the purchaser of the assets so the money goes into the account, and then is paid to me and my wife as shareholder distributions, because there is no longer a business to run ! Has anyone else dealt with this?

[@ThisTruckingLife]

Not asking for tax advice but I am curious single member LLC being taxed as an escort can I pay myself through 1099 for payroll

[@allupinyobiz]

No.

[@LynxStarAuto]

Why you all up in my business woman? Good stuff👌🏽

[@aniljoseph5092]

Let’s say you have a W-2 and make 150k through it. Since you max out the SS wage limit, do you still have to make the self employment tax of 15% if you paid yourself on a scorp payroll for the second business? It would just be the Medicare portion and employer match right which would be 2.9% with the employer match.

[@intelimoteintelimote7448]

Can i elect to have Google issue a 1099 to my S corp as opposed to me as an individual? I intend to form a single member S Corp.

[@YouAREyoubeYou]

WAVE is good as well

[@AmarachiDesi]

Are you able to switch from a single member llc to a s corp later down the road

[@somahollywood9602]

Yes

[@briggsc4]

But isn't the LLC a bit of a misnomer since you can be an LLC taxed as an s-corp?

[@evenichols8431]

Would we be W-2 employee or can we be 1099?

[@evenichols8431]

oops - I asked too soon. From your further explanation, it sounds like W-2 (FICA taxes)

[@Franchute73]

en serio que hermosa eres!!!...disculpa, pero ya desde hace tiempo te sigo en tus publicaciones y realmente me has servido y siguen haciendolo, pero no pude dejar de pasar la oportunidad de agradecerte con un piropo.....en serio que hermosa eres!

[@coolhead8686]

Hi, Thank you for a very informative video. One question. I have an s-corp. I am the sole owner of my s-corp. My s-corp has been paying unemployment insurance to both NYS and Federal. However, my business has no work for almost two months already. Therefore, I need to file for unemployment benefits as an employee. May I know what is the instruction for me to file for unemployment benefits? THANK YOU.

[@VivianWynter]

What if you're not making money in your first year, etc ?

[@DericAnslum]

...then you don't make the the s corp election until your net profits make it advantageous...

[@gabrielavalenzuela8693]

I am trying to switch from SP to SMLLC and I don’t know if what form I need. Is it the 201? Certification of formation for profit?

[@yamelysarce8091]

Why would I need to become an S-corp with a single member LLC? Doesn't the IRS automatically consider a single member LLC as disregarded entity? Therefore, the corporation is not taxed and the income is passed through the individual. I'm confused. Thank you!

[@GTTrains]

Hey! So I recently opened an S-Corp- which was advised by my accountant. But I like getting second opinions. If you don’t make enough in your company to give yourself a salary (w2) I was told you can pay yourself via 1099 as a consultant when starting out. Is this true?

[@gabyeah101]

AstoriaPiper Great question!

[@travissmith7748]

Good question. Wondering this as well.

[@allupinyobiz]

I guess you CAN but I don't really see the point. It's all going to be taxed the same in the end.

[@GTTrains]

180 Law Co. LLC ok. The reason why I did it was because to start a LLC in NY is actually more expensive than a S Corp. so for the first year or two I may not be able to take advantage of the S Corp status, I’ll have it all set up by the time I’m ready. (Was my thinking). Thank you for your reply!

[@paulhegreness4865]

Wouldn’t you still run payroll but not actually pay yourself?

[@mohibewatan1420]

Are you educating on S Corp or on Banking ???

[@shawnsmith8121]

Hi there how much should I pay an accountant to take care of my payroll bookkeeping and Scorpi tax an individual tax and I am one person LLC selecting to file tax as an tS Corp.. thanks

[@music7774life]

S-corp vs partnership

[@micahsr.9703]

hello Big fan youve helped me out tremendously. i have a personal question one that I dont want to ask publicly, how can I contact you to ask these 2 questions that I have?

[@allupinyobiz]

You can email me at [e-mail]!

[@jonplay3602]

Her voice is annoying but the information is the most accurate online. Everybody else only talks about the self-employed tax benefit as though that's it and totally misses the federal taxes part. You're still paying personal income taxes at the federal level for all of the income

[@tdritzema]

Need ... pictures ....

[@joebenham27]

are an llc with s-corp status and a c-corp with s-corp status essentially the same thing?

[@allupinyobiz]

That is a great question!!! 🙌 I'll make a video about it! But the short answer is: kinda. Same in the tax sense, but legally different. Thanks for watching and for the comment!

[@ErinJGaribay]

How does one take a distribution from their s-corp (1 owner)? Transfer funds from their business bank account to personal bank account??

[@j54911]

The answer to your question is in minute 17:48

[@j54911]

The other possible answer to your question is in minute 17:24

[@syedalam6363]

If I have an LLC -> S Corp does that mean it's considered as Inc?

[@allupinyobiz]

There are slightly differing opinions on that. IMO, no, it is still an LLC. It's just taxed as an S Corp.

[@syedalam6363]

@@allupinyobiz Thank you for your reply. If i want to get in touch with you regarding some questions I have can you tell me a good way to do so?

[@jreezy6047]

Awesome video, but Isn’t 31-39% a bit high for 100,000? It should be 15.3% on the $50,000 salary, making it $7,650 (which includes your portion as your own employee). Then the dividend tax rate on the remaining $50,000. Then your standard deduction will lower that amount even further. I’ve personally never heard of an individual paying $30,000-40,000 taxes on $100,000. Not unless they cashed out their 401k too early or something.

[@allupinyobiz]

It is high, but I'm trying to keep the numbers simple for demonstration purposes. It also doesn't take into account the progressive tax brackets. It would be 15.3% + ordinary income tax on the salary and just ordinary income tax on the distributions. Also correct that I'm not taking into account ANY deductions/tax credits, etc. Again, just trying to demonstrate how S Corp tax works.

[@topdoglogistics1406]

I pay myself through payroll but had to take a pay cut cause the industry is over strength

[@Samil101]

How does Child Support play into all of this!

[@mac_vegas7026]

I want you to be all up in my business

[@KaptnSauce]

Just want to ask. I live in Texas and I totally made my LLC an S Corp by mistake. Is it better to pay yourself as a W2 than 1099? I’m trying to figure out how to officially pay myself.

[@lorierasch]

W2 means your an employee of your company. 1099 means you are another company that needed your services.

[@AndyHTu]

Can you pay yourself 0.00 just so you can qualify for PPP or EIDL?

[@maximo6037]

$0 is not an amount....it literaly means "nothing"

[@DRJoe100]

20%, 40% and 40% shareholders of an S-Corp: do dividends need to be evenly distributed say 100k = 20k, 40k and 40k? Or can 1 shareholder receive all the dividends?

[@allupinyobiz]

CAN that happen? Sure! But it all depends on what your by-laws or shareholder agreement says.

[@holland6648]

How to Pay yourself in a s corp while having no income because your in the starting fase?

[@allupinyobiz]

Don’t make the S Corp election in that case

[@holland6648]

180 Law Co. LLC thank you! What is the income range you should make the election?

[@DericAnslum]

...P&L...

[@skillzwhattup1973]

What's the point of being in business if you are still taxed 31-39% as a business owner? This makes no sense! No way this is correct!!!