If your business is structured as a sole proprietorship, you will pay yourself directly through an "owner's draw" and report this through Schedule C of your individual tax return. If your business is ... |
Bonuses should follow the same general guidelines used for salary with respect to compensation for C corporation owners. In addition, in a C corporation, ... |
What are loans doing in this list? Loans aren't compensation, are they? Well, the answer to that is that they often get reclassified as compensation (or, worse yet, as dividends) by the IRS, so you ... |
The value of so-called fringe benefits can enhance your total compensation enormously. Many have the advantage of being deductible to your business but not taxable to you. These "welfare" benefits ... |
As tax-favored, wealth-building vehicles, retirement plans are hard to beat for providing tax deferred compensation for you and your employees. Contributions to a qualified plan are deductible to the ... |
Life insurance is the last of the late, great tax exempt sources of cash. The group-term life policies used as a basic fringe benefit are fine, as far as they go. But in the case of most business ... |
Legitimate deductible expenses permitted for travel, meals, entertaining clients, automobile expenses and the like, if properly claimed and documented, give ... |
Dividends sound nice. You buy a stock, it pays dividends, and you're a happy investor. In fact, if you own a C corporation and it owns some GM or Disney or IBM, a whopping 70 percent of the dividends ... |
One widely used method for building personal wealth, by letting the business compensate you for your financial risk as well as your services, is for you to retain any real estate used in your ... |
In the early stages of your business, you may be investing in the business first and paying yourself later on. |
