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My partner and I started a C-Corp a few years back and are now finally making profit! We have 1 employee that recently started but they work 100% commission. This being our first month of making profit I want to make sure I set this up right. Do I set both myself and my partner up as employees and set our payments up as once a month (we generally just split the left over funds after expenses).
Or is there an alternative way of doing this?
Thank you
You've come to the right place, @Gigabit.
I'll make sure you can set up yourself and your partner as an employee in your company file. Before I provide you the steps, can you confirm if you're a sub-chapter S corporation or an LLC electing to be taxed as a corporation? That is the only legal course of action that allows you to be your own employee.
Also, it would be best for your business to consult with an accountant. They will be able to tell which option you should go with.
Here's how to set up an employee in QuickBooks Online:
With these instructions, you'll be able to add yourself and get paid under your own company.
I'm adding this link to know how to start your payroll in QuickBooks as your guide: Getting started with payroll.
I've got your back if there's anything else I can help you with. Take care.
To be honest I am not 100%, we are a Massachusetts based company that registered as a C-Corp in Delaware. We file as a corporation not sure about the sub-chapter / llc bit.
Hello, @Gigabit.
Let me share additional information on how you setup payroll in QuickBooks.
Depending on your business entity, you can either yourself with a salary or take an owner’s draw to compensate yourselves. You can visit this blog for more detailed insights: How to Pay Yourself as a Business Owner: Salary or Draw.
So you'd be able to verify whether you're a sub-chapter S corporation or an LLC electing to be taxed as a corporation, I'd recommend contacting your State Tax Agency. Once we're able to confirm your business type, you can set up your payroll information and tax information in QuickBooks. You can refer to this article for more detailed instruction: Set up payroll.
Get back to us here if you have other questions about using QuickBooks to manage your payroll. I'm always here to help.
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