How do I pay myself from my Business?

One of the most popular questions that Business owners always ask is:

"How do I pay myself from my business?".

According to the IRS, 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.

The most common forms of business are as follows:

Sole proprietorships

Partnerships

C Corporations

S Corporations

(LLC) Limited Liability Company

Please click each link above to find out more about the specific entity according the IRS website.

The following information is derived from IRS.gov as of the date of this blog post.

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Corporate officers

An 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