money after payroll llc taxed as SCorp

Forum|Forum|2 years ago
January 27, 2024
1 reply
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Hi,

I wanted to find out if you have an LLC taxed as an SCorp, your profit (after taxes, payroll and expenses) that you pass through to your personal tax return that is then only taxed as income tax.

What can you do with that money, does it need to stay in your business accounts? Can you as the business owner just take the money and spend it on whatever you feel fit?

Also if quickbooks has failed to correct an incorrect w2 and filed the incorrect w2 with the IRS how do you personally correct that (meaning what forms do you need to fill in with the IRS) ?

Thank you all for any help

Not A Product Question

Mike9241

You file an S-corp return. The remaining ordinary profits are taxed at ordinary income tax rates. Distributions do not affect this. They simply reduce your tax basis in the S-corp. Yes, any money left after expenses can be taken out by the owners and used for anything they want. Warming don't spend it all because you may need some of that money to pay the income taxes on the remaining profit.

for incorrect w-2 you file w-2 c