LLC with S-Corp - What happens if I get a normal job?

[kvand00]

I'm no financial wizard... I have an LLC with an S-Corp election.

I run payroll on myself and pay myself a reasonable salary.

What would I need to do if I got a "normal" job again, the business will make some money for a while but eventually taper away.

I can't have a normal paycheck with deductions and my business payroll at the same time I'm assuming... just looking for general advice here as to what steps would be involved. (Dissolve the company? Revert back to a sole proprietor, etc...)

Thank you for any advice.

[Freelancier]

Keep the company, pay yourself in dividends whenever you need, make sure you don't have an issue with not paying enough estimated taxes for the money the LLC makes.

Basically, a single-person LLC is a pass-thru, so you're responsible for all profits made by the LLC whether you take a salary (or not). So just make sure you don't underpay your payroll and estimated income taxes during the year and you'll be fine just taking distributions from the company as you need.

BUT... this advice is based on the limited amount of information you've provided and I'm not an accountant. Your best bet is still to talk with an accountant who can advise you how to stay on the right side of the IRS.

[tallen]

I can't have a normal paycheck with deductions and my business payroll at the same time I'm assuming... .

Why not? A lot of people have multiple jobs, earning paychecks from more than one place. There's probably some strategy to filling out your W4 forms with your different employers, how many allowances to claim against which paycheck, but I'm not really up on that... Ultimately, it is all income that you have to report and will be taxed on.

[kvand00]

I guess that makes sense... I didn't think of it like a normal paycheck job since I was the owner/worker/employee on the payroll.

Thanks for the replies so far, I really appreciate it.

[cpajdb]

I'm no financial wizard... I have an LLC with an S-Corp election.

I run payroll on myself and pay myself a reasonable salary.

What would I need to do if I got a "normal" job again, the business will make some money for a while but eventually taper away.

I can't have a normal paycheck with deductions and my business payroll at the same time I'm assuming... just looking for general advice here as to what steps would be involved. (Dissolve the company? Revert back to a sole proprietor, etc...)

Thank you for any advice.

As an S-Corp you have to continue to pay yourself a reasonable salary for as long as you are working in your business. If your company stops making decent money your best bet is to dissolve it so you are no longer required to pay for the expenses of putting yourself on payroll.

But as long as you are an S-Corp and working in the business, you cannot just pay yourself with dividends and no salary, unfortunately.