Owners Distributions: What You Need to Know

Рет қаралды 7,262

Clara CFO Group

Күн бұрын

Пікірлер: 51

@SavantStudio 9 ай бұрын

Thanks!

@ClaraCFO 9 ай бұрын

Thank you so much!!!

@sunlightbtc247 3 ай бұрын

Almost 5 years already 0 INCOME

@sunlightbtc247 3 ай бұрын

Nothing from anywhere "0"

@autugula974 2 ай бұрын

Thank you so much, your videos are so helpful. I am a first time bookkeeper and learning as I go working with a company 😆 every week I reference your videos

@jodiblackwell9698 6 ай бұрын

So Glad that I found your tutorials, which I have subscribed to. You explain everything so well, I still have a lot of your tutorials to watch, I am learning so much from you, so a very big thankyou.🙂

@ClaraCFO 5 ай бұрын

Love to hear it!

@AshMalik 4 ай бұрын

I absolutely agree! I am also so happy that I found your tutorials.

@sarakappler3059 9 ай бұрын

Great video as always.

@ClaraCFO 9 ай бұрын

Thanks for watching :)

@dgvt7845 9 ай бұрын

Your content is so helpful. Thank you.

@ClaraCFO 9 ай бұрын

I’m so glad!

@accountinglearning 7 ай бұрын

Great Video, Thank you so much.

@williamhdenney3897 9 ай бұрын

Really valuable information.

@ClaraCFO 9 ай бұрын

I try :D

@PamelaLewerenz 8 ай бұрын

Would love an additional video on how much an owner should think about drawing from the profits...

@ClaraCFO 8 ай бұрын

Working on this!

@rzen798 7 ай бұрын

Could you please create a video detailing the entire process of what to do when you have a client for the first time as a bookkeeper? Include the initial steps, the do's, and the don'ts. We would really appreciate it! Btw, thanks for your video we really appreciate it. Very informative and helpful.

@bookeepingpros 9 ай бұрын

Thank you, could you show the next step iie. when you clear out the balance sheet line item for the distribution to retained earnings?

@wilsoncollins-byrd5248 6 ай бұрын

Great video, thank you!🙏🏽

@MelissaCalandro 7 ай бұрын

Very helpful info!

@colsar 6 ай бұрын

As you mentioned, an S-Corp owner is probably taking a salary and distributions. You showed us to set the owner up as a vendor for the equity distribution. I assume the owner is set up a 2nd time as an employee for the W2 portion?? Thanks! Joe.

@SavantStudio 9 ай бұрын

Thank you! I have learned SO much from your videos. I own an LLC with S Corp tax status. I am the only owner and only employee. I have already set myself up in QB as a W2 employee. Am I understanding you correctly that I also need to set myself up as a vendor when I categorize my Owner's Distribution bank transactions? So basically I will be in QB as both an employee and a vendor? Thank you!!

@clownprincetv7793 9 ай бұрын

Thank you for this! I am a new subscriber and want to learn from your videos.

@ClaraCFO 9 ай бұрын

Thanks for being here!

@debrathompson554 9 ай бұрын

Love your channel! I would love to hear about how to grow your business.

@ClaraCFO 9 ай бұрын

thanks for being here! Noted!

@amyc.3688 9 ай бұрын

How is the tax paid for distributions? Is it more beneficial for an owner to take a higher distribution vs a lower salary? Which one is lesser on the tax bracket for an S-corp?

@ClaraCFO 9 ай бұрын

You need to pay yourself a "reasonable compensation" in W2 wages as a S-corp owner. The profits of the business will be taxed regardless of how much you take for distributions.

@Pink-Coconut23 9 ай бұрын

What would be an appropriate proportion for an owner of an S Corp. which usually pays herself via W2 to instead split her annual income between W-2 and distributions? Do you have a video that talks about that? Thanks!

@bruno2006 9 ай бұрын

40/60

@ClaraCFO 9 ай бұрын

There is no rule about percentage breakout between the two. You need to pay yourself a "reasonable compensation" in W2 wages as a S-corp owner. We are planning more videos on reasonable compensation!

@docash 9 ай бұрын

Thank you for this, I've been wondering how to set up a draw....I have used Quicken for personal accounting for years, and just started a new sole proprietorship. I plan on using quickbooks for isolation of business from personal, but can you maybe discuss is there a pathway to tracking both on quickbooks? Or is it better to maintain complete separation?

@ClaraCFO 9 ай бұрын

good question. I recommend separating them completely - you can keep your quicken for personal and set up a QBO file for your new business (congrats by the way!). I use Monarch for my personal finances and QBO for the business. I've thought about if it's even possible to do both in QBO, and it really isn't.

@jq2561 2 ай бұрын

Doesn't a distribution reduce the percentage of ownership of the individual receiving it if other partners are contributing that amount?

@Bill56136 9 ай бұрын

How about business owners drawing money out of the business account and use the money to pay off a business vehicle loan? It is still considered an owner draw?

@ClaraCFO 9 ай бұрын

No, the business vehicle loan should be on the balance sheet as a debt, and that payment would be recorded against the loan to reduce the loan balance.