92 \\ S Corp Taxes Explained: CPA Advice on Payroll, Distributions & K-1s
- Author
- Tiffany Phillips - CPA, Small Business Money Mentor, Financial Expert
- Published
- Thu 04 Apr 2024
- Episode Link
- https://smallbusinessfinance.podbean.com/e/92-breaking-the-code-s-corp-tax-secrets-every-business-owner-must-know/
Thinking about switching to an S Corporation or already made the move? In this episode, we break down exactly how S Corp taxes work and how you actually get paid as a business owner. Learn why “reasonable compensation” matters, when to start payroll, and how distributions differ from wages. We also explain what a K-1 is, how profits are taxed, and why you don’t pay taxes twice on S Corp income. Plus, you’ll hear why tracking equity on your balance sheet is critical before taking money out and how to avoid costly mistakes that come from treating S Corp payouts like a paycheck. If you’re confused about how money flows from your business to you, this CPA advice gives you a clear roadmap.
Next Steps:
💰Pay Less in Taxes – Start Here! 💰
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