Suppose I own a company. I am the only member of the company. I pay corporate taxes on the bills that my company emits to the customers. That's done.

If I want to use the money of the company for whatever thing unrelated to the company, do I need to also pay income taxes on it?

  • 4
    What kind of company is it? Is it a partnership? A C corp? An S corp? – David Schwartz Feb 12 '19 at 5:21
  • The "unrelated thing" would probably be considered income to you. Say you have your company buy a private jet, which you then use for personal, non-business travel. The IRS would consider that income: conklindd.com/t-personaluseofcorporateaircraft.aspx – jamesqf Feb 12 '19 at 19:54

In the US, a single-member corporation is considered by the IRS as a pass-through entity. That means that the company income passes directly to you as your personal income. You pay personal income tax on whatever income the company generates for you.

  • Very useful. Thank you. Also wondering about other countries. – Curious money person Feb 12 '19 at 5:48
  • 1
    @Jose There are about 190 countries — are you looking for an answer for each of them? – Mike Scott Feb 12 '19 at 7:12
  • If the situation is different then yes. My guess is in many countries might be quite equivalent. That's what I want to figure out. – Curious money person Feb 12 '19 at 8:55
  • 2
    ... and if the OP had a C-corp, your advice would have just got him into serious trouble with the IRS. How can you answer this question, without knowing the type of corporation the OP is actually running? – s1lv3r Feb 12 '19 at 17:38

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.