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If you business is incorporated, it's up to the two of you how to do it. Typically, you will have the company write cheques (or make transfers, whatever) to each of the humans: as a salary, which for convenience is typically a fixed amount each month as bonuses, which are easy to vary and can also have a tax-deferral component as dividends, which are in ...


The partnership agrees to pay each of you salaries and/or bonuses, typically based on the net profit brought in. You do have a legal document setting out the rules for this partnership, right? If so, the exact answer should be in there. If you don't or it isn't, you need a lawyer yesterday.


Through your question and then clarification through the comments, it looks like you have a U.S. LLC with at least two members. If you did not elect some other tax treatment, your LLC will be treated as a partnership by the IRS. The partnership should file a tax return on Form 1065. Then each partner will get a Schedule K-1 from the partnership, which the ...


I'm a Finance major in Finland and here is how it would go here. As you loan money to the company, the company has no income, but gains an asset and a liability. When the company then uses the money to pay the bills it does have expenses that accumulate to the end of the accounting period where they have to be declared. These expenses are payed from the ...


I don't see where there's a "discount" here. You're just saying they'd deduct something from your paycheck. In that case, the W-2 they send you next year will show the total they paid, before this deduction. You wouldn't have to do anything special to report it, just report your income as it appears on the W-2. If they really give you a discount, if they ...


On your paycheck stub you can see deductions from your gross pay. Some are taxes: Federal income tax, state income tax, Social Security... Some are pre-tax: 401K, Health Insurance, Flexible Spending account, Commuting... Some are post-tax: Roth 401K, Supplemental Insurance, coffee fund... Pretax deductions reduce your taxable income in the eyes of the ...


Yes, the deduction is income. It will be reported as your salary and deducted after-tax.

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