Tax Implications of Owner Distributions
As a business owner, figuring out how to pay yourself can be tricky, especially when it comes to taxes. In our latest podcast episode, we break down the tax implications of owner distributions, providing you with practical insights to manage your business finances effectively.
Why You Need to Listen
Are you:
- Confused about the difference between owner’s draw and payroll salary?
- Struggling to understand how your business structure impacts taxes?
- Looking for ways to optimize your personal income while staying compliant?
If any of these sound familiar, this episode is for you. Tune in to get a clearer understanding of your options and make informed decisions for your business.
What We’ll Cover
In this episode, you’ll discover:
- The difference between owner’s draw and salary, and how to decide which is best for you.
- How different business entity types (Sole Proprietorship, LLC, S-Corp, etc.) handle owner distributions and the tax implications for each.
- Key considerations like owner’s equity, payroll taxes, and self-employment tax.
- Practical examples of paying yourself and how these choices impact your overall tax situation.
- Best practices for ensuring you’re compensating yourself appropriately while managing your tax liabilities.
Here’s a Sneak Peek of What You’ll Learn:
- Why it’s crucial to differentiate between owner distributions and regular business expenses.
- The importance of record-keeping and how to track your owner distributions effectively.
- How to ensure you’re paying yourself a “reasonable salary” in an S-Corp to avoid IRS scrutiny.
Plus, I’ll share the story of Patty, an S-Corp owner who paid herself $2,000 monthly through owner’s draw, which offered flexibility but required careful tax planning. She also explored a payroll salary option for stability and automatic tax deductions.
Take Control of Your Owner Compensation Strategy
Don’t miss out on these valuable insights that could transform your business. Tune in to the full episode to get all the details and start your journey from surviving to thriving.
Remember, Understanding the tax implications of owner distributions can make all the difference in how you manage both your personal and business finances. Join us in this episode to gain actionable insights on how to structure your compensation to achieve your financial goals while staying compliant with tax laws.
Happy listening, and here’s to your business success!
Back Taxes: Myths & Facts (and Why You’re Not Going to Jail)
Case Study: Tackling Back Taxes – How to Get on Track In this episode of the Become Sensible podcast, we explore how freelancers and small business owners can manage back taxes and regain control of their finances. If you’ve missed tax filings and feel unsure about the next steps, this episode is packed with practical…
Continue Reading Back Taxes: Myths & Facts (and Why You’re Not Going to Jail)
Q4 Financial Planning for Business Owners: How to End the Year Strong
Q4 Financial Planning for Business Owners: How to End the Year Strong In this episode of the Become Sensible podcast, we dive deep into Q4 financial planning—a critical task for business owners looking to optimize their year-end financial performance. Whether your business is thriving or needs adjustments, Q4 offers the chance to realign your goals…
Continue Reading Q4 Financial Planning for Business Owners: How to End the Year Strong
The Difference Between Budgeting and Rolling Forecasting
Difference Between Budgeting and Rolling Forecasting In this episode of the Become Sensible podcast, we dive into a vital topic for business owners: understanding the difference between budgeting and rolling forecasting. If you’re looking to improve your financial planning and make better real-time decisions, this episode is for you. Why You Need to Listen Are…
Continue Reading The Difference Between Budgeting and Rolling Forecasting
How to Transform From Surviving to Thriving: Transform Your Business’s Financial Outlook
Looking for Business Financial Outlook Last week on the podcast Become Sensible, we’re diving into a crucial topic for every business owner: making the transition from barely surviving to truly thriving. Why You Need to Listen Are you: Ready to grow but always seem to need more cash? Growing but not seeing that growth reflected…
Proudly powered by WordPress
