I have been in the business a while as a producer and have a firm grasp on coverage, selling etc. My accounitng is a little shaky, but need some input on what types of checking, savings, trust account, etc., to open? Any help would be great. Also, it is just me, so how do I pay myself w/ an S- corp.
Related posts:
- What Are The Best Types Of Banks To Open A Savings Account With?
- What Is A Good Bank To Open A Checking And Savings Account?
- How Much Money Do You Have To Have Before You Can Open A Checking Or Savings Account?
- Good Bank To Open A Checking And Savings Account?
- Open Checking And Savings With Financial Aid Money?
You need a checking account. You can also open a savings account but it is not necessary unless you want to keep a reserve to earn some interest. Presumably you will be selling insurance of one or more companies.
As an S corporation, you can pay yourself a salary by writing a check each month and withholding federal tax, social security, and medicare. However, you must realize that this “salary” is not your personal income and it is not a business expense for the cor portion. All of the earnings of the S corporation are passed on to you whether or not they are paid as “salary” or retained in the business. Similarly, business losses are passed on to you as well. One reason for electing S status is that business losses reduce your other personal income. For the first $100,000 of corporate earnings, a C corporation has a lower tax rate than an individual. However a C corporation’s dividends are taxed once again to the owners. Of course in a C corporation, your salary is actually a business expense.
You need an accountant. Don’t go for free advice over the internet.
I’d also suggest, that maybe you need to ask your current employer for a bit of help.
Additionally, whoever gives you a contract, should be able to give you a little support – which I think you’re going to need.