What is the name of your state? NC
Partners and I are researching both s corp and LLC information before deciding on entity. We will have 6 employees (3 shareholders, 2 hourly and 1 as a 1099 contract trainer). In addition to money for time worked, each shareholder will draw a monthly bonus if we meet quota. We also intend on giving a small dividend in April of each year to offset any extra taxes each shareholder will incur in their K1.
How do we pay the shareholders money for time worked plus bonus money (when applicable) so that it's not double taxed?
Thanks for your replies.
Patsy
Partners and I are researching both s corp and LLC information before deciding on entity. We will have 6 employees (3 shareholders, 2 hourly and 1 as a 1099 contract trainer). In addition to money for time worked, each shareholder will draw a monthly bonus if we meet quota. We also intend on giving a small dividend in April of each year to offset any extra taxes each shareholder will incur in their K1.
How do we pay the shareholders money for time worked plus bonus money (when applicable) so that it's not double taxed?
Thanks for your replies.
Patsy