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3dxtrusion-gmail
Level 1

Being a solo business owner, S corp. want to know about money withdraw for personal use, how many and how much paying taxes on it? Please explain me. Thanks

 
2 Comments 2
Rustler
Level 15

Being a solo business owner, S corp. want to know about money withdraw for personal use, how many and how much paying taxes on it? Please explain me. Thanks

An s-corp requires that a working shareholder be on salary, the owner is a shareholder too

 

The only way to withdraw money from the s-corp is to issue a distribution to all shareholders.  That distribution may or may not be subject to income tax reporting.

 

You need to work with an accountant from the sounds of it

Teri
Level 9

Being a solo business owner, S corp. want to know about money withdraw for personal use, how many and how much paying taxes on it? Please explain me. Thanks

Suggest you need to speak to your accountant or tax preparer to determine how much equity is available.

Ideally, this is done along with tax return so that you can see how much profit or loss adds to your "Basis."

 

As a single owner of an S-Corporation, you are first required to pay yourself payroll and pay payroll taxes.

Is that already happening via payroll service?  That is money for personal use of course.  Then depending

on your available Basis and current available cash, you may be able to pay out Distributions to yourself.

 

S Corps do not pay Federal taxes directly. Company profit or loss flows through to you as an individual, 

and then you pay taxes on your payroll and business income earned on your personal income tax return. 

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