How do I pay myself?
If you are incorporated, you are deemed a employee and should be included on a payroll system. S corporation owner shareholders need to take a "reasonable" salary. Only begin a payroll for yourself when you know your business has the cash flow to allow you to regularly and consistently take a check. The amount of your check will be net after withholdings. If you never have had any experience running a business, you definitely need to retain a CPA to advise you about payroll reporting requirements for yourself and your workers. You are personally liable for any payroll taxes you do not pay in a timely fashion or those you fail to report, even if you are incorporated. Some CPAs will recommend a payroll service company.
Need Professional Help?
If you need help with "Business Start-ups" or have other tax questions, we can help you find a local licensed tax preparer for a free, no-obligation consultation.