A One Dollar S Corp Salary Is Not a Strategy | Wheel of Wisdom

It is Wednesday, so we spun the wheel and pulled six pieces of advice off the internet to see what survives contact with a real business. Almost none of it did. Sleep when you're dead, which is a lovely idea until you meet me on eight hours. Once you have an LLC your personal assets are protected no matter what, which stops being true the moment you run personal money through the business and hand a court a reason to disregard the LLC you never treated as separate. Never use your own money, just max out business credit cards, because debt is cheaper than equity. That is not even a sentence. Always pay yourself last, which we have opinions about. A one dollar S Corp salary, which you are welcome to try before you call me. And more software will fix your operations, which it will not, because software laid over a broken process just gives you a broken process with a subscription.Book a Free Call with PennyConnect with us:FacebookInstagramLinkedIn1610 Financial SolutionsTakeaways:An LLC is a legal entity and not a tax entity, and running personal money through it is how the corporate veil gets pierced.If you elect S Corp status the IRS expects a reasonable salary, and reasonable means roughly what you would pay someone else to do your job.The moment to consider an S Corp is when the business can actually pay you that reasonable salary, not before.Put your own pay into the monthly business expenses, so the number you look at is what the business truly costs to run.Write the SOP before you buy the software, because an SOP is just a list of how you do something and it will show you whether software helps at all.This show is for general information and encouragement. It is not tax, financial or legal advice. Please consult a professional about your particular situation before you make any decisions.