end of year disbursement check

ANUMBER1

any of you small business owners write yourself a end of year disbursement?

I do.

cadman

Nope. My distributions are already high due to buying personal stuff through the year. I pay myself the  minimum salary to keep the IRS happy and above that Is a distribution to me. Thanks to Trump, my taxes should be lower this year.

swampmonster

I always check with my Accountant on everything. The main thing I remember is that having a salary that is justified by the market place for my type of job is important first. 

ANUMBER1

swampmonster said:

I always check with my Accountant on everything. The main thing I remember is that having a salary that is justified by the market place for my type of job is important first. 

I do too, my wife and I draw a modest salary and then a modest disbursement based on my CPA's counsel and the health of the business.

GA Fin

From the construction management business we(my business partner and I) just take a salary(taxed as ordinary income).

From out wives' home building business they take a distribution(taxed as passive income).

cadman

swampmonster said:

I always check with my Accountant on everything. The main thing I remember is that having a salary that is justified by the market place for my type of job is important first. 

That is what I call the minimum salary to keep the IRS happy. 

ferris1248

I'll take several distributions through the year in addition to my salary. Most of the time they go towards quarterly tax payments.

AC Man

When the you know what hit the fan around 2009 or so in our industry I swore I was going to keep a fat business banking account when times got better. 

We made it thru ok, many did not. I haven't taken a distribution check since. Although very tempting. 

You never know when the next drought will hit, but I'll be ready for it.