Ahhh. I host through Globat.com. I like their service. Just wasn't real crazy about their templates and am trying to re-do mine using Coffee Cup or Front Page. So am in the process of checking out everyone else's web sites to see what I like and dislike about them!

Check out Hamid's HTML basics classes in the archives. I am in the process of re-building my website thanks to these classes.

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Lily Chambers, The Virtual Office Goddess, LLC
Author "How to Do Your Own Small Business Bookkeeping"

Thank you so much for explaining the difference between Sole Proprietor and LLC. Your explaination was more clear then I recall my college teacher explaining it, LOL. Very infomative - now I can make a decision as to which one I'd like to be!!

Thanks again,
~Nikki Chisholm

Since an S Corp also has pass through income can you just cut yourself a check without paying any payroll taxes on it? or do you have to take out payroll tax?

Also, I noticed that you mentioned you need to make deposits for taxes for net profits for an LLC is the same true for an S corp? I have always run my business at a loss so I have never made any deposits and I wasn't sure if it is was because I did not have any profits or because I did not need to? I would like to think my accountant would have mentioned this if I needed to but hey you never know, I am actually in the process of transitioning to a new CPA now.

Thanks for your feedback.
Kim

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Kim Beckers
Online Business Manager

An S corp is a whole different ball of wax than an LLC. My 9-5 is an s-corp and the owner is treated as an employee, complete w/tax withdrawals. And no, we don't make tax deposits on income for the s-corp. We do, however, make deposits to his IRA to reduce income and put money aside in a savings account toward the end-of-year taxes.

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Lily Chambers, The Virtual Office Goddess, LLC
Author "How to Do Your Own Small Business Bookkeeping"

thanks Lily, that is excatly what I was doing before as well except for the IRA is that through the corporation or does this come out after taxes? I was looking into starting a retirement plan for the corporation once the business took off.

Thanks, Kim

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Kim Beckers
Online Business Manager

The IRA is personal. It becomes a tax shelter - discuss it w/your new CPA to find out the best option based on your circumstances. I believe you can also set up a 'matching' deposit from your business, but I don't know the specifics...

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Lily Chambers, The Virtual Office Goddess, LLC
Author "How to Do Your Own Small Business Bookkeeping"

Thanks Lily,
That is kinda what I thought, I will speaking with some CPA's next week and hope to have made a decision shortly.
Kim

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Kim Beckers
Online Business Manager

WOW. More information that i needed form Tess. You're full of good information. Thank you. I'm so glad i found this blog.

Thank you Tess. I can't wait to REALLY going thur this line by line!!

Tess, Diva, et al -
THANK YOU! As you so aptly identified, this is probably one of the top questions we "newbies" are fretting about. This tutorial/session was extremely helpful!

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Gina Starr - Owner/Virtual Assistant
5-Starr Solutions

Thanks Tess for posting this!

Thank you Lily for all the useful information! The more times I visit this forum the more I love it!

Since LLC pay quarterly, does that mean when we cut a paycheck to ourself we don't have to take taxes out, or does that vary by state as well?

Thanks.

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Sarah Mosure

LLC income is 'flow-through' for IRS tax purposes, meaning that all income is considered personal to you. Rather than cutting a 'paycheck', I would take an owner's draw and no, you wouldn't tax yourself. But DO be sure and make quarterly ESE (Estimated Self Employment) deposits to the government.

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Lily Chambers, The Virtual Office Goddess, LLC
Author "How to Do Your Own Small Business Bookkeeping"

Wow, I am glad to have found this thread. It has given me some very valuable information....and a lot to think about! Thank you Lily for sharing your wealth of knowledge!

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Gladys Strickland
GS Business Resources

Originally Posted by Office Goddess

LLC income is 'flow-through' for IRS tax purposes, meaning that all income is considered personal to you. Rather than cutting a 'paycheck', I would take an owner's draw and no, you wouldn't tax yourself. But DO be sure and make quarterly ESE (Estimated Self Employment) deposits to the government.

When you say "take an owner's draw" does that mean I would just go to the bank and make a withdrawal instead of writing a check to myself?

Thanks.

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Sarah Mosure