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so you took my advice and when you started your business you formed a an LLC taxed as an S corporation Most states thatamp;#39;s how it works California a little different now how do you get money out of your company see you now have two different roles you are both an employee and youamp;#39;re an owner so an employee gets salary so youamp;#39;re going to pay some salary to yourself from your S corporation but youamp;#39;re also an owner an owner gets a distribution now whatamp;#39;s the significance for tax purposes salaries are subject to Social Security taxes distributions are not so any amount you can justify as a distribution no 15.3 percent 16.2 percent Social Security taxes on that distribution big tax savings
