Are you a solo owner? You need to take an s-corp election and you do not need to pay yourself that type of salary. At most you should pay yourself $54,000 a year.
The reason is money that goes through an s-corp you don’t pay self employment taxes on. Salary you do. That is 15%.
You wouldn’t need to pay yourself more than $54,000 without the government getting upset.
Right now, based on $54,000 a month you are losing about $90,000 a year not being structured like this.
The rest of the money, you can just transfer to your personal account and do whatever you want with. It is all your money as a solo owner, so if you want it just send it to yourself.
I’ve been through this exact situation before and I’m currently a tax strategist and help people with this type of stuff everyday.
When we had all that extra money, I moved to Asepn Colorado and had a bunch of fun skiing and living it up.
You can do whatever you want with the money, but please get your s-corp election set and stop paying yourself $14k a month.
If you want help reach out. I think my email is still in my profile.
The reason is money that goes through an s-corp you don’t pay self employment taxes on. Salary you do. That is 15%.
You wouldn’t need to pay yourself more than $54,000 without the government getting upset.
Right now, based on $54,000 a month you are losing about $90,000 a year not being structured like this.
The rest of the money, you can just transfer to your personal account and do whatever you want with. It is all your money as a solo owner, so if you want it just send it to yourself.
I’ve been through this exact situation before and I’m currently a tax strategist and help people with this type of stuff everyday.
When we had all that extra money, I moved to Asepn Colorado and had a bunch of fun skiing and living it up.
You can do whatever you want with the money, but please get your s-corp election set and stop paying yourself $14k a month.
If you want help reach out. I think my email is still in my profile.