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Jan 25, 2022
2:58:29pm
BYUMizzou Former User
It depends on how you are organized. Do you have an S-election?
If you have a sub-S election, you can pay yourself a salary (and pay all the payroll taxes), then once you've paid yourself a "reasonable" salary, you can take distributions of profits. The profits are not subject to self-employment taxes. You just pay normal income taxes on them at whatever your marginal rate.

If you're not a sub-S entity, then everything you take out is subject to regular income taxes plus self-employment taxes.
This message has been modified
Originally posted on Jan 25, 2022 at 2:58:29pm
Message modified by BYUMizzou on Jan 25, 2022 at 2:59:40pm
BYUMizzou
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Mark Harlan
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BYUMizzou
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