Have an S corporation and are looking to get money out of it effectively and efficiently? We are here to help! When it comes to taking out money properly from any S corporation there are definitely a few important things to take into consideration. In fact, there are a few different ways to successfully take out money from your S corporation — but it’s important to know all the different ways and choose the best practice and option for your needs. Here are some of the best tips out there to effectively and efficiently transfer money out of your S corporation.
Taking Them Out In Wages
One of the best ways to transfer money out of an S corporation is via wages. In fact, paying yourself from your company account is a great way to transfer your money from one place to another without actually losing it. If you haven’t determined how much you plan on earning in salary, you’ll definitely want to do so immediately. That’ll help ensure you have revenue that you can keep track of while also establishing a proper salary for yourself.
Distributions Are Key
Another way to transfer your money from your S corporation to another account is via distribution. In fact, unlike C corporations, S corporations are uniquely designed to help encourage the distribution of earnings among shareholders — you — the owner. As a result, there is nothing better than ensuring your distributions are in place as a way to effectively and efficiently transfer money out of your S corporation.
Many S corporation owners will transfer their money out of their S corporation via reimbursements. In fact, for many business owners, this is often the best option for them. If you are ultimately purchasing business-related items, using a reimbursement as a way to transfer money out of your S corporation can be the best way to proceed.
At the end of the day, being mindful of how you transfer money out of your S corporation is essential for any prudent business owner. In fact, knowing the different options available to you can help make informed decisions about the best business practices to make when transferring money out of your S corporation effectively and efficiently.
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Unlike other accounting firms, The Harding Group, located in Annapolis, MD, will never charge you for emails or phone calls and will strive for open communication with our clients. Whether you are interested in business advising, tax preparation, bookkeeping and accounting, payroll services, Training + support for QuickBooks, or retirement planning, we have the expertise and years of experience to help. We serve clients in Annapolis, Anne Arundel County, Baltimore, Severna Park, and Columbia. If you are ready to take the stress out of taxes, contact us online or give us a call at (410) 573-9991 for a free consultation. For more tax tips, follow us on Facebook, Twitter, YouTube, and LinkedIn.