I'm a small business (S Corp) owner with a few questions. Hopefully I can get some free advice here!
1) I have heard that it's good to run as many expenses as you can through
In the eyes of the law, is this illegal, or cheating? Should the money first come to me via payroll, then I disburse it for my personal expenses? It seems that this method avoids paying any tax whatsoever on this hypothetical "income".
2) I'll consult an accountant about this, but what happens if your S Corp shows a profit? Is that money taxed as income, and then retaxed if disbursed as payroll?
I guess that's it for now. Thanks for your help!