The Motley Fool Discussion Boards

Previous Page

Education, Jobs & Professions / Self-Employed Fools


Subject:  Re: Self-employed S-corp owners Date:  8/5/2003  11:32 PM
Author:  Donna405 Number:  7964 of 15018

I started my S-corporation 4 years ago, and started showing a profit after 2 years. As you know, the "profit" must be included as income in your personal tax return, which I am happy to do. I have myself as an an employee, use QuickBooks Payroll (the one where I prepare my own reports, etc.) and have fun. Yes, I do have to pay Unemployment to the state, but here in SC, that is terminated after the first $7,000 wages paid. I also set up a SEP-IRA. At the time this was set up, I could only contribute on behalf of the corporation for the benefit of me, as the employee, 15% of gross salary. Now it has increased, to, I believe, as much as 25%. Next year, I intend to increase my contribution to 20%.

I am sure an accountant could advise you on the "pass-through"; however, I am not sure that is legal.

Copyright 1996-2019 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us