A group of tax professionals who have deep and diversified tax experience, a passion for technology, and the desire for helping others. We created Bullseye Tax Relief as a platform for helping businesses and individuals with their tax problems.
According to the IRS Page Paying Yourself, as of February 26th, 2021, the procedures for compensating yourself for your efforts in carrying on a trade or business will depend on the type of business structure you elect. Below are topics that frequently arise when new business owners ask the Internal Revenue Service questions about paying themselves.
Corporate officersAn officer of a corporation is generally an employee, but an officer who performs no services or only minor services, and who neither receives nor is entitled to receive any pay, is not considered an employee. Refer to “Who Are Employees?” in Publication 15-A, Employer’s Supplemental Tax Guide PDF (PDF). PartnersPartners are not employees and should not be issued a Form W-2 in lieu of Form 1065, Schedule K-1, for distributions or guaranteed payments from the partnership. Refer to partnerships for more information. Sources:https://www.irs.gov/businesses/small-businesses-self-employed/paying-yourself The post Business Taxes: Paying Yourself – Corporate Officers & Partners appeared first on Bullseye Tax Relief. Via https://www.bullseyetaxrelief.com/business-taxes-paying-yourself-corporate-officers-partners/
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