Can I pay myself a salary if I own a LLC or a partnership?
No. Partners in a partnership receive their income from the profits of the organization. The profits are taxed to each partner via K-1 form. A partner can received a “Guaranteed Payment”. A Guaranteed Payment is a payment made to a partner for services or for the use of money. The payment is paid regardless of partnership profits, and is not subject to income tax.
Answer provided by: Len Titone – Next Level Financial Management
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