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Thursday, April 27, 2017

Starting a side business and have questions about how to pay myself.

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I’m starting a side job from home that I’m pretty excited about. The website is almost done and I’ve got people lined up to test my site / service’s functionality and get their feedback.

I need to setup my business legally and was wondering about the best outcome for my situation. An LLC would be nice, given that I could easily take some profits from the business as compensation. However, forming a C corporation seems to be the prevailing wisdom with startups. I’m confused about specifically how to, and how much (% of profit?) to pay shareholders in dividends.

What is /r/startups thoughts on this situation?

Edit: I am aware of double taxation with C Corporations, but will likely have to hire a CPA to find the “break even” point of dividends and other compensation involved with C corps.

submitted by /u/dadatwork62
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April 27, 2017 at 02:39AM

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from /u/dadatwork62

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