The Truth About S-Corps: How To ACTUALLY Pay Yourself

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00:01 - Intro to Payroll
02:09 - Understanding the Trifecta
04:17 - The Kohler Payroll Matrix
06:46 - Payroll Allocation Examples
09:00 - Working with Your Tax Advisor
10:17 - Summary and Additional Resources
#Taxes #scorp #payroll #avoidtaxes #paylesstaxes #wealth #tax #realestateinvestment #Markjkohler #KKOSLawyers #markjkohlerLIVE #Entrepreneur #rentalrealestate #taxplanning #smallbusiness #taxlaw

[@estebanlau2116]

Awesome content, Mark! What if we’re 2 co-owners? Would we take the % of the reasonable compensation matrix and distribute that same payroll between the 2 of us?

[@Dantanalicious]

Keep in mind that with an S-Corp you will more than likely also have a SEP-IRA. The more you allocate to payroll the more you can contribute to the SEP-IRA, and the more you will add to your future social security benefit. If you make a lot of money, you may want to take payroll up to the maximum taxable earnings rate for social security of $168,600 and take the remainder in K-1 income.

[@dandeilke469]

The matrix is ridiculous and has nothing to do with the fact you’ve never had a reasonable comp audit. The IRS simply has not been challenging the issue for the last 40 years as long as the owner was taking some amount of W-2 income.

[@neoorez5968]

I keep looking over my shoulder while watching these videos. Just absorbing this knowledge feels like a crime. At the very least, im absolutely convinced that im being red flagged and put in a database, just for watching. Smdh.. 🙂‍↔️

[@brianokeefe5247]

Do you include your own salary with expenses to arrive at the final profit figure for using the matrix?

[@OffGridNorthIdaho]

Mark, I am consistently not seeing links to your deeper dive s-corp video in the descriptions. Can you update the descriptions with the link? Thank you!

[@DrKoser]

The camera switching back and forth so much is disorienting Thank you for the information

[@AgustinTube07]

Does the matrix's Y-axis (% of profit) represent the total payroll or the payroll for each owner/employee? I ask because in my situation we're two S-Corp owners.

[@eugenefritz5459]

does the s-corp have to pay capital gains tax on stocks/crypto or does above apply as well?

[@veronicabowers4153]

I have had multiple winning million dollar instant lottery tickets that I sign and was stolen from me is their any way to get any of that money.

[@pastorjosh6046]

Thanks Mark, I'm an ordained Pastor. Can I set up an S corp. as a pastor?

[@dale5710]

Should we use the percentage Biden did in 2017?

[@geo1134]

Can you elaboreate? Did biden have an s corp?

[@christopherdupremd8897]

Does the S- Corp have to pay state taxes on the profits they make and give out as distributions to the partners?

[@amyking1750]

An S-Corp is a "pass through" entity. It must file a tax form that reports its income and how much was distributed to owners (K-1s), but those who received the distributions report the income and pay income taxes on their own 1040s. The X-Corp pays no income tax of its own.

[@robsteal3887]

"None of my clients have ever been audited for taking too little in salary" No, they got busted for other shit lol

[@headlibrarian1996]

One thing I don’t like about trusts owning personal bank accounts is ACH stops working. Banks really really really don’t want interpersonal bank transfers to be a thing, so their title checks on ACH transfers will block transfers to and from them. Heck, you can’t even ACH transfer between a personal account and your S-corp account. I had to write a physical check to fund it, very annoying, and I’ll have to write a business check to get money out.

[@tonihogan]

This might be specific to your bank or the way you're trying to transfer. I don't recall ever having problem moving money within the same bank. In fact, I don't like that some clients have the ability to do this when they manage their own bookkeeping. It really messes of things if they don't know what they're doing.

[@headlibrarian1996]

@@tonihogan ACH implies interbank not intrabank.

[@Agnes-m4i]

“For plunger” “for titan camera man” 👄😻👅