How to take a S Corp Distribution
Hello Linda , I saw some funny postings yesterday and I hope that sillypeople refrain from spoiling the value this web site adds.
Now to my question :
If I am a single owner / employee S Corp who made 25000$ last year and have 16K in payroll and 4K in expenses , why can't I take 5K in distribution ? And if I can , then how do I get it - do I give myself a 1099 MISC ?
Next questions is that if I do not take tis distribution, still I pay the taxes as pass through entity , so what is the deal about not taking the distribution ? I do not understand. Isn't it simple for me to even out by leaving the S Corp at 0 dollars on day one of the new calendar year ?