Business Owners—Taking Money Out of a Business

Learn the best practices for taking money out of your business while minimizing tax consequences. This guide covers the proper structuring of transactions to avoid unwanted tax liabilities, including dividends, wages, loans, and more. Essential for business owners looking to manage their finances without risking personal liability or IRS scrutiny.

Highlights:

• Proper Transaction Structuring: Tips on avoiding common pitfalls that can lead to reclassification of funds and additional taxes.

• Intermingling Funds: Understand the risks and tax implications of mixing personal and business finances.

• Wages and Dividends: Guidelines on reasonable compensation for C and S corporation owners.

• Loans and Distributions: Best practices for loans and cash distributions to maintain compliance.