Mary, Are you simply not cashing your own paychecks or are you not paying yourself (w2) at all?
I also operate as an S-Corp, and in the beginning when money was irregular and I didn't have enough money to cover my paycheck, I still would write one to have a record of it for my taxes and so, I just didn't cash until later when I had the money. Of course you will have to pay the payroll taxes on an ongoing basis. That might be something you want to do. Just collect the paychecks until you have the money, that way you are paying a salary and the IRS will be happy. Greg On Mon, Aug 24, 2009 at 9:35 AM, Mary Luketich <[email protected]> wrote: > Hi Holly, > > I created an S-Corp last year, and I think I did it too soon. I am still > getting my own sites completed and have to pay myself salary as an S-Corp. > Since I don't have the work to cover the expense, I cannot pay the salary, > so I'll have tax problems the next time I file. > > I highly recommend an S-Corp, but NOT until after you have steady income to > cover salaries. > > Mary Luketich > > > > > On Sun, Aug 23, 2009 at 6:11 PM, Holly Fortenberry < > [email protected]> wrote: > >> Thanks guys. See, this little experience has taught me and many of the >> lurkers the importance of using a tax professional. So it was a very good >> thing. :-) >> >> Cheers, >> Holly >> >> Terry Brown wrote: >> >> Agreed - I'm pretty ad nauseam at this point. :) >> >> >> >> ** >> >> ** >> >> <[email protected]> >> >> >> ------------------------------ >> >> *From:* [email protected] [ >> mailto:[email protected] <[email protected]>] >> *On Behalf Of *Keith Aric Hall >> *Sent:* Sunday, August 23, 2009 6:00 PM >> *To:* [email protected] >> *Subject:* [Refresh Austin: 4385] Re: business model >> >> >> >> I'm not sure the point you are trying to make here. If you read on further >> you will see that it says... >> >> >> >> "Remember, this is only a mechanism for >> >> tax purposes. It doesn’t change the fact that >> >> the business is legally a Limited Liability >> >> Company." >> >> >> >> Which means the personal liability protection and other legal statuses >> still apply to single member LLCs. And if an LLC has more than one member it >> files form 1065. The form you file is only a mechanism for reporting >> income/loss to the tax authorities. It does not interfere with legal status. >> Nor does it change your "tax status." >> >> >> >> We can go on and on ad nauseam. My point still stands. You need to consult >> a tax/legal professional. >> >> >> >> kah >> >> >> >> On Sun, Aug 23, 2009 at 5:45 PM, ferodynamics <[email protected]> >> wrote: >> >> >> www.irs.gov/pub/irs-pdf/p3402.pdf >> >> "What Kind of Tax Return >> Do I File? >> 1. Single member LLCs. >> Generally, when an LLC has only one >> member, the fact that it is an LLC is ignored >> or “disregarded” for the purpose of filing a >> federal tax return.1" >> >> >> On Aug 22, 6:35 pm, Keith Aric Hall <[email protected]> wrote: >> > Dude, please stop. Pub 555 is in regards to community property laws. It >> has >> > nothing to do with your federal tax status or your federal tax return. >> LLCs >> > file form 1065 same as a partnership. You may not be making it up, but >> you >> > certainly do not know what you are talking about. >> > I got my degree in accounting and worked both Arthur Andresen, LLP and >> Ernst >> > & Young, LLP as a tax accountant 10 yrs ago before i made the jump to >> web >> > dev and graphic design. Information can be a dangerous thing. Please >> consult >> > a tax professional. >> > >> > >> > >> >> > On Sat, Aug 22, 2009 at 5:43 PM, ferodynamics <[email protected]> >> wrote: >> > >> > > I don't make this stuff up, I'm sure you can find plenty more >> > > references as IRS.gov - >> http://www.irs.gov/faqs/faq/0,,id=199633,00.html >> > >> > > "If the LLC has: Only one owner, (see Publication 555, on >> > > community property states), it will automatically be treated as if it >> > > were a sole proprietorship (a disregarded entity), unless an election >> > > is made for it to be treated as a corporation." >> > >> > > As I said, no distinction. You file as a sole proprietor, partnership >> > > or corporation, you don't file as LLC. >> > >> > > On Aug 22, 4:13 pm, Keith Aric Hall <[email protected]> wrote: >> > > > I disagree as well. >> > > > LLCs are not the same as C-Corps. Your point about tax benefit of >> LLC vs >> > > > C-Corp is incorrect as well. The IRS does make a distinction. >> > >> > > Good one. Now where's your proof? >> > >> > -- >> >> > Keith Aric Hall >> > >> > http://www.keitharichall.com/ >> > twitter: keitharichall >> >> >> >> >> >> >> -- >> Keith Aric Hall >> >> http://www.keitharichall.com/ >> twitter: keitharichall >> >> >> >> > > > > --~--~---------~--~----~------------~-------~--~----~ Our Web site: http://www.RefreshAustin.org/ You received this message because you are subscribed to the Google Groups "Refresh Austin" group. 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