Feb 03, 2011 from
Lucrece Borrego
Value
$0.00
We are a two member LLC in the State of Texas that has filed to be taxed as an S-Corp. It is my understanding that it would be tax beneficial to hire myself as an employee of the S-Corp to avoid self-employment taxes and deduct that cost of my salary.
I am wondering when is the right time to hire myself as we are still in start-up and just slowly entering the period where revenues will begin to exceed expenses.
What do I need to do to hire myself and begin paying myself a salary? What forms are necessary?
Answers
About the Expert
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As soon as you are financially able to do so begin paying yourself a small salary. Seek an accountant with an affiliation to a web based national payroll service such as Paycycle or Surepayroll. You select weekly or bi-weekly the amount you will pay yourself. It doesn't have to be a fixed amount.
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