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Accounting & Bookkeeping & Small Business Forum
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SomeSummer
Joined: 08 Oct 2008
Posts: 1
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| Posted: Wed Oct 08, 2008 11:05 am Post subject: S Corporation question |
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I just did a ton of research and found that an s corporation is tax exempt except that the shareholders pay the company tax.. how does this happen?
How often can a shareholder draw on their share of the company profit and what are the taxes/forms that i need to fill out?
I'm new to all this!
Any help will be greatly apperciated. |
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QBConsultant
Joined: 06 May 2008
Posts: 56
Location: Kansas City, MO
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| Posted: Thu Oct 23, 2008 10:16 am Post subject: |
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An S corp doesn't pay any taxes--all the income (or loss) from the S Corp flows through to the owners and is reported on their personal income taxes.
An S Corp owner is supposed to take reasonable compensation (ie payroll) not draws.
I'd recommend you seek the advice of your tax advisor or attorney.
Michelle L. Long, CPA, MBA
Author of: Successful QuickBooks Consulting
Advanced Certified QuickBooks ProAdvisor
National Trainer for Intuit Accountant Trainer/Writer Network
http://www.SuccessfulQuickBooksConsulting.com
http://www.amazon.com/Successful-QuickBooks-Consulting-Comprehensive-starting/dp/1434810690 |
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