Business. Money. Life.
Being the owner of your S-Corp affords many benefits that you can take advantage of. For new S-corporation owners, and even many seasoned business owners, understanding how to utilize these benefits can be as challenging as understanding a foreign language. It is important for you to remember that all of your personal income from the […]
Having a home office can be a great option for deducting expenses. Before we start deducting though, there are a few qualifications that must be met to ensure you are compliant. Home Office Qualifications When figuring the home office deduction for a business, we have to consider the following: Is it truly an office? Can […]
You can get Social Security credits as a W2 Employee! When you are an active shareholder with a W2 wage through your company you can obtain qualifying Social Security Credits! The salary needs to be at least $4880 per calendar year, (this changes each year) you can build up your Social Security credits for retirement. […]
Income and Expense through W2 wage When you are an active shareholder with a W2 wage through your S-Corp it becomes personal income and a business expense. Your salary must be reasonable compensation, you can utilize then benefit of being an employee through your corporation or LLC. “How does this work” you ask? It’s actually very […]
You can get reimbursed for Medical Expenses! This is an expense to the business which brings down the taxable income for the company. The payroll that is issued is not subject to Social Security and Medicare tax so the company saves on payroll taxes each year. In turn, you get reimbursed for your medical expenses through your […]
Owning an S-Corp can seem confusing as to how you get paid. Properly utilizing the benefits of your corporation could potentially save you thousands of dollars in taxes. There are steps to take in order to be properly compliant with the IRS. These steps are: Become a W2 employee with reasonable compensation (Read our previous […]
A common question among S-Corp shareholders is “how much does my business pay me?” In order to figure reasonable compensation there are multiple factors to take into consideration. Some of them are: What is your experience and training What are your duties and responsibilities How much time and effort do you put in What are […]
As a shareholder in a corporation you have duties to complete on an annual basis. One item the IRS requires is that you hold a corporate meeting of the shareholders. This can frighten businesses who have never done one or can make you feel overwhelmed with the addition of day to day functions. It is actually very […]