She gets income from two sources: as an employee (“normal” income), and as a business owner. There’s something called an owner’s draw, which essentially lets you take money from the business for personal use, and it gets taxed as personal income (i.e., normal job income taxes).
This is my loose understanding. We have a CPA for our stuff, and she sorted all this out before we even started dating.
I would highly recommend asking an accountants advice, I assume there are similar services for when you file in the UK. Finding a CPA (Chartered Accountant in the UK) is huge, they’ll generally charge more but they can represent you in the event you get audited (had to look it up and confirm it’s the same for UK). Now if you get audited, they have a vested interest in protecting you. In the US they’re often legally obligated to protect you (and themselves).
How does this work if you want to take money out? Like give yourself a bonus that’s taxable? I mean legally.
She gets income from two sources: as an employee (“normal” income), and as a business owner. There’s something called an owner’s draw, which essentially lets you take money from the business for personal use, and it gets taxed as personal income (i.e., normal job income taxes).
This is my loose understanding. We have a CPA for our stuff, and she sorted all this out before we even started dating.
That actually sounds really good 👍 Would need to read how this works across the pond, but hoping fairly similar.
I would highly recommend asking an accountants advice, I assume there are similar services for when you file in the UK. Finding a CPA (Chartered Accountant in the UK) is huge, they’ll generally charge more but they can represent you in the event you get audited (had to look it up and confirm it’s the same for UK). Now if you get audited, they have a vested interest in protecting you. In the US they’re often legally obligated to protect you (and themselves).
Thanks, will take a look at that. Actually got an accountant acquaintance so il pick his brain one day :)