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S corp owner payments

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fsmith

Guest
What is the name of your state? california
my business partner and I set up an s corp in california. we have no employees, it's just us two doing everything. i'm trying to figure out if we need to put us on a payroll (and do tax withholding and all that complicated paperwork), or simply get cut a check from the business and do our own tax payments.

since by definition an s corp is taxed the same way a partnership is, it seems like the latter should be possible. but i was told by someone that since it is a corporation, we are employees and need to be be set up that way. i'm not sure which is correct.
 


ALawyer

Senior Member
Both are correct. Your income is a salary, and requires the corporation do withholding, pay FICA, etc. A payroll service. or Quickbooks, is a good way to go.
 
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fsmith

Guest
S corp - more

Thanks for your advice. However, I'm not sure I totally understand. When you say both are correct do you mean we can just pay self employment taxes on the money we are paid and not have the company withhold?
 

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