Episode Summary
This episode focuses on how small business owners pay themselves. Specifically, Brett discusses how your choice of business structure–whether you operate as a sole proprietor, partnership, S-corp, or C-corp, affects the mechanics of how you’re paid and the pros and cons of each scenario.
Please note this discussion today is a very high-level overview of complex subject matter and is for informational purposes only. You should consult your tax professional (CPA, EA, or tax attorney) about your particular situation.
Episode Highlights
- [02:52] How your business entity type affects how you’re paid.
- [04:15] Why you would choose one business structure (and payment type) over another.
- [05:10] Sole proprietorship considerations.
- [06:59] Partnership considerations.
- [09:20] S-corp considerations.
- [12:15] C-corp considerations.
- [12:56] How to figure out which structure and payment method is best for your business.
For more information on choosing the best structure for your business, check out our last episode: Structuring Your Business for a Tax-Efficient Sale.
Enjoy the Episode!
