How do I pay myself?
After buying a biz, do you put yourself on the payroll as a W2 or just take distributions? Is there a difference in W2 vs K1 income? Ie is w2 “more expensive” once fully burdened?
Post a question, deal, job, etc...
Make a post...
by a searcher
from Columbia University - Columbia Business School
in Washington, DC, USA
in Washington, DC, USA
1yr ago
Share
7 Likes
2,432 Views
Loading...
reply
by a searcher
1yr ago
from University of California, Santa Barbara in Santa Monica, CA, USA
from University of California, Santa Barbara in Santa Monica, CA, USA
Can we dig in a little more? Is a "market salary" in the $100k range (california)? Second question is how do distributions look (assume C Corp) to potential buyers of the business at a later date?
reply
by a searcher
1yr ago
from Cornell University in Kansas City, MO, USA
from Cornell University in Kansas City, MO, USA
Why would you structure as a C-Corp? Worse taxes in the interim and while you may think you'll save taxes at exit through a stock sale, if I'm a buyer I'm baking the NPV of the lost asset step up and resulting depreciation tax shield into my offer price...
More on Searchfunder
Loading...