Understanding Distributions: A Guide for S-Corporation Owners
Most S-Corp owners have taken a distribution without fully understanding what they just did. They moved money from the business account to their personal account, spent it, and moved on. What they did not know is that number their advisor gives them every quarter is not a blank check, running personal expenses through the business is not the same thing, and taking too much has tax consequences that show up months later. We break down how distributions actually work, what the rules are, and how to stay on the right side of them.
Understanding Your Quarterly Estimated Tax Payments
Most S-Corp owners have taken a distribution without fully understanding what they just did. They moved money from the business account to their personal account, spent it, and moved on. What they did not know is that number their advisor gives them every quarter is not a blank check, running personal expenses through the business is not the same thing, and taking too much has tax consequences that show up months later. We break down how distributions actually work, what the rules are, and how to stay on the right side of them.
How to Save Taxes with an S-Corporation What Most Business Owners Don’t Know
Everyone has heard the rule of thumb. Elect S-Corporation status once your profit hits a certain number. The problem is nobody can agree on what that number is, and the IRS does not care about your rule of thumb. We break down how the S-Corporation election actually works, why it saves taxes, when it does not, and what a real optimized strategy looks like using two real client tax plans with real numbers.