wintersbaw
01-16-2012, 03:42 PM
Hello,
I am looking for some advice on something that I hope will be glaringly obvious. I formed an S Corp several months ago as it was my intention to start a business as a Merchant Account Provider. I have since done nothing with the business due to lack of time....I currently have a full time job and was hoping to do this on the side. I have spent several hundred dollars on various equipment and setup costs, but haven't had any luck with bringing in new contracts. As a result, I have had no earnings what so ever. In trying to find the answer to this myself, I have unearthed the unsettling fact that I should have been paying myself a salary? My business has no assets, no bank account and no source of income yet. I have read that some folks prop their S corps up with personal savings until they can float on their own, for me this isn't an option. My understanding was that the S corp would pass its earning/losses onto me and that I would factor it into my annual taxes. In the past, I have used simple software solutions for my personal filings. Can anyone offer any advise that speaks to these points?
Thank you,
Brian
I am looking for some advice on something that I hope will be glaringly obvious. I formed an S Corp several months ago as it was my intention to start a business as a Merchant Account Provider. I have since done nothing with the business due to lack of time....I currently have a full time job and was hoping to do this on the side. I have spent several hundred dollars on various equipment and setup costs, but haven't had any luck with bringing in new contracts. As a result, I have had no earnings what so ever. In trying to find the answer to this myself, I have unearthed the unsettling fact that I should have been paying myself a salary? My business has no assets, no bank account and no source of income yet. I have read that some folks prop their S corps up with personal savings until they can float on their own, for me this isn't an option. My understanding was that the S corp would pass its earning/losses onto me and that I would factor it into my annual taxes. In the past, I have used simple software solutions for my personal filings. Can anyone offer any advise that speaks to these points?
Thank you,
Brian