The Best Way to Pay Yourself from Your Business

[@millennialmoneymom]

Great video 🎉

[@thetemudgin193]

Great video! You said though that getting a business license may be overkill for a reseller and that may be case where a reseller is operating out of their home and business licenses are simply a matter of a nominal amount paid to a locality for registration. The local law may not require such a license where the business is not open to the public, for example. But in states where localities can collect a local annual gross receipts tax from businesses in conjunction with the business license registration (Virginia, Pennsylvania, and West Virginia), those localities may be aggressive in using data from the IRS in finding businesses that are not registered and coming after them for the tax owed, plus interest and penalties. It can take a couple years for them to catch up and by that time the amount owed could be significant.

[@KnowWhat]

@2:45 So when you’re doing your own bookkeeping, just write “equity distribution” when you transfer to personal account from biz account?