Hey fastlane fam!
So this is the newest interesting challenge I have come across, or didn't think about when I set up for corporation. For some odd reason, I thought you could pay yourself dividends whenever you wanted throughout the year. However, the case seems to be, you can only do this after year end?
My business cash flow is doing good, and the bank account is filling - I have calculated the estimated taxes and amount I can pay myself, which I planned on cashing out 65% of profit for the first year. However, how exactly does an entrepreneur pay themselves before year end? I've heard people talk about draws on dividends, but also loans you have to pay back at interest? Not exactly at the point where I can afford an accountant, although I do know how important they are.
I am in Canada, if it makes a difference, however I'd think US laws are similar.
So this is the newest interesting challenge I have come across, or didn't think about when I set up for corporation. For some odd reason, I thought you could pay yourself dividends whenever you wanted throughout the year. However, the case seems to be, you can only do this after year end?
My business cash flow is doing good, and the bank account is filling - I have calculated the estimated taxes and amount I can pay myself, which I planned on cashing out 65% of profit for the first year. However, how exactly does an entrepreneur pay themselves before year end? I've heard people talk about draws on dividends, but also loans you have to pay back at interest? Not exactly at the point where I can afford an accountant, although I do know how important they are.
I am in Canada, if it makes a difference, however I'd think US laws are similar.
Dislike ads? Remove them and support the forum:
Subscribe to Fastlane Insiders.