Small Business Question

  1. wealthseeker profile image61
    wealthseekerposted 6 years ago

    I started a S corp business this year; I am only employee.

    Let's for example;
    I invested $100, spent $90 for business and made only $2.

    Question is should I reimburse myself

    a) myself $90 that I spent
    b) partial reimbursement
    c) Take reimbursement next year when I may turn profit.

    What is best suggestion for business and tax perspective?

    1. Hugh Williamson profile image90
      Hugh Williamsonposted 6 years agoin reply to this

      I like answer (c).

      Normally start-ups don't make a lot of $ the first year. There's no advantage to milking it for income unless you're really strapped.

      Why not wait and purchase something that'll add to the business?

      Best of luck with your venture.

      1. wealthseeker profile image61
        wealthseekerposted 6 years agoin reply to this

        Hugh,

        Thanks. I have spent money on business out of my pocket and wanted to see if I can recover or get reimbursement now or later.

 
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