Event Description

In the early days of a small business, the owner is often putting every dime they have back into the business. Once the business starts to make money, the question often arises as to how to get money out of the business in the most tax-advantageous way possible. In this course, we will explore this question from different angles. What happens if we pay the owner more money? Is there anything we need to worry about if the owner takes distributions? Also, what if the company pays the owner rent? We will talk about the advantages and disadvantages of each of these possibilities, so that you can better serve your small business clients’ needs!

Objectives

• State reasonable compensation considerations.
• Identify fringe benefits that need to be included in W-2 income for S-Corporation shareholders
• Recognize the tax attributes of minimum guaranteed payments made to partners
• Recall key tax rules related to taking tax-free distributions.