Fictional company (proprietorship, attorney, CPA, profit)
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Lets say you have a company/llc. It makes widgets and you make 5K a month. Is there a formula of what you take out for you salary ? I ask this as my son started a lawn co or lanscaping and its booming, he's over loaded. He's all LLC and that but knows everything but not the sharpest tool in the shed IMO.
Lets say you have a company/llc. It makes widgets and you make 5K a month. Is there a formula of what you take out for you salary ? I ask this as my son started a lawn co or lanscaping and its booming, he's over loaded. He's all LLC and that but knows everything but not the sharpest tool in the shed IMO.
I would advise you to tell your son to talk to CPA as soon as he can. I think there are rules for some entities that make you pay a reasonable compensation and take dividends. I am not an accountant but dont quote me thats just what i heard.
He's all LLC and that but knows everything but not the sharpest tool in the shed IMO.
He knows nothing. And I really doubt he has an LLC
You were advised he needed an attorney last month.
Now you're advised that he needs an accountant too.
If he's too stubborn or dim to do these himself ... be a good mommy and do it for him.
Just follow the advice given here and leave him alone. If he's old enough to have an LLC, he has to figure out how to run it and when to seek professional help.
Did he ever get a bank account (per your previous thread)?
Your kid needs some adult supervision ASAP. What is the underlying issue where he refuses to talk to professionals?
To answer your question - a single person llc is essentially 100% owner income as a sole proprietorship. He is likely taxed on 100% of profit via schedule C. In respect to how much he "should be" taking as a draw - it likely doesnt matter in this case from a tax standpoint.
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