Skip to main content

How a Business Owner Gets Paid

By February 27, 2015No Comments

Kahuna Accounting was featured today at the Zen Payroll blog in an extremely informative post about how business owners can pay themselves.

Kahuna Senior Accountant, Carin Weiss-Krolikowski explained in the article:

“I think the most important thing for any owner of a small business, is to have a good bookkeeper and a trusted Tax advisor. When paying yourself, as a small business owner, many owners think they only have the option for owners draw. This, of course, is a viable option. However, if a company is formed as an S Corporation, they can pay themselves as a W-2 employee. Same is true with an LLC, if they claim to file taxes as an S Corporation. There is also the option of Guaranteed Payments, (as an LLC) where an owner can pay themselves a salary (no taxes withheld) and take the expense as a line item reducing the company’s annual tax liability. There are many more options than just an “owner’s draw”. Again, I would urge them to always consult a Tax Professional.”

See the full post here.

Leave a Reply