HOW DO YOU TAKE A PROFIT FROM YOUR BUSINESS LLC OR INC?

Do we do it around the paycheck, a little lapse upon investment or a little alternative method?

What’s the many taxation fit method?

{ 1 comment… read it below or add one }

FOZ August 10, 2010 at 12:07 am

You earn a pay check. These funds are taken from the profit or the corpus of the entity depending on what type of contract you have with the entity. You can be a share holder and receive funds that way also or you can do both. For efficiency, I would consider drawing a wage. That way you can still hold shares and have the profit roll over back into the business.

With either a LLC or corporation (INC) it is a double tax situation. The LLC and INC pay taxes on the profits and you as an individual are responsible for your personal taxes.

Have you considered a Trust?

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