#BookkeepingTip: Payroll Yourself for Corporations
I know most of you are sole proprietors & LLCs, but I also know there are a couple of you in here who are LLCs filing as S Corps and some S Corps (maybe even some C Corps).
So let me tell you a little story about a business owner. She and her accountant decided it would be better tax-wise for her business to file as an S Corp. So she filed the necessary paperwork.
Her accountant told her she needed to get on payroll ASAP. So she got a quote from us and the accountant, but decided she would handle it on her own...except she never did. Instead, she kept paying herself with transfers and asking her "employees" to remove their own taxes.
And that brings us to now! 9 months later and a big ol' heapin' mess that somebody has to clean up because the IRS is NOT going to be happy.
Moral of the story? Consider it a wise investment to get help with payroll when you upgrade to filing as a corporation if you don't know how to do it yourself.