Whew! That was a lot of info. What other questions do you have about salaries, W2s, contractors, 1099s, S-corps, distributions or K-1s?

"You can't connect the dots looking forward; you can only connect them looking backwards. So you have to trust that the dots will somehow connect in your future. You have to trust in something-your gut, destiny, life, karma, whatever. This approach has never let me down, and it has made all the difference in my life." -Steve Jobs

@FinePointsBookkeeping

6 ай бұрын

Wise

Great video!!

You did an awesome job explaining the different scenarios!

@FinePointsBookkeeping

5 ай бұрын

Thanks for the positive feedback! Krista (FinePoints Admin)

This was such an insanely helpful video. Thank you!

@FinePointsBookkeeping

3 ай бұрын

Glad it was helpful! Krista (FinePoints Admin)

Thank for this

@FinePointsBookkeeping

6 ай бұрын

Thanks for watching and being engaged!

As a corporation one's salary could be higher than one's owner's draw which means a bigger tax deduction. Am I understanding that correctly? What about non-profits, including those that garner millions+, or CEO of the non-profit?

Thank you 👍 I am certified bookkeeper but don't have work experience so this is very helpful for my job applications 🙏😇

@FinePointsBookkeeping

4 ай бұрын

Glad it was helpful!

Just opened myself a S-corp/LLC. This video was a nice review. I currently hired a bookkeeper, but am considering getting into bookkeeping as a side gig. (I am a physical therapist assistant)

@FinePointsBookkeeping

6 ай бұрын

Bookkeeping is a great side gig--let me know if you have any questions about it!

Can I use an owners draw to pay back money I put into the business to get it going? It’s a Llc type. I want to not pay taxes on it.

Not to be all in your business, but do you mind disclosing what was that dollar amount you reached that your accountant said to switch over?

@FinePointsBookkeeping

6 ай бұрын

I think around 40K annually is the average threshold. It may vary household to household depending on what else you have going on.

@mrs.howell1905

6 ай бұрын

@@FinePointsBookkeeping Profit?

@FinePointsBookkeeping

6 ай бұрын

Yeah, net income.

Hi, hope all is well. Question. In my LLC, if I make $100,000 in a year, and I take out or Draw $25,000. On my LLC, P&L it still reads $100,000 because the draw is not an expense, yes? Now do I claim the $25,000 as income on a Schedule C or just enjoy the money? Thanks JC

@FinePointsBookkeeping

3 ай бұрын

You claim the full 100k, b/c that's the profit of the biz. For this biz type it doesn't matter the amount you transfer to your personal account--only the biz profit matters.

@joeytaxes8673

3 ай бұрын

Great, that part I understand, my inner question is the $25K I take out - do I claim it in a Schedule C or do I not claim the 25K.....I hope I am making sense.@@FinePointsBookkeeping

Also what made u choose s instead of c?

@FinePointsBookkeeping

6 ай бұрын

That was what my accountant recommended--I think that C-corps are for bigger businesses.

I work for a law office. Partners take a distribution. Do I pay them thru payroll or as a vendor. All have direct deposit

@FinePointsBookkeeping

4 ай бұрын

For our partners, we write paper checks for distributions (they prefer that). You can definitely put it through a payroll company, as long as it's marked as a distribution (not going on the W2).

So owners draws are not taxed personally. Got it

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