4 ms·
Just to clarify one point; when a member of the LLC, you'll be taking "guaranteed payments" or allocations rather than W2 income (and paying quarterly estimated
by floathub 10y ago
Just to clarify one point; when a member of the LLC, you'll be taking "guaranteed payments" or allocations rather than W2 income (and paying quarterly estimated personal taxes out of that). You only do W2 income once it's a C-Corp.
Not a lawyer or an accountant, so use salt with the paragraph above.
(edited to clarify that post above is correct, but possibly ambiguous)
- intrasight 10y agoS-Corp also, since IRS will take a dim view of not paying payroll taxes. My accountant said use a rule of thumb of having at least 70% of pay be as W2.