I am a small business owner that wants to start sending myself paychecks as proof of income. Do I need to report myself as a new hire to the state? [I live in NYC btw]

  • bighappy1970@alien.topBEnglish
    1·
    10 months ago

    You can restructure as an S-Corp, then use Gusto or another payroll service to pay yourself on payroll (you must pay yourself on payroll in this case).

    IMO, this is a much better approach as you have documented W2 income so personal loans, mortgages, etc are much easier.

    You can also setup a solo 401k and roth IRA at Vanguard and the company can match 25% of your payroll so this gives you the potential to contribute more than 50K to your 401k per year - well worth it!!

    S-corp also has a much longer history of legal precedence compared to LLC so I have heard that legal outcomes are a bit more predictable (ask your lawyer about this)

    You can also start a new S-corp and have the LLC sell all of the assets to the s-corp to have a clean break. Lots of options.

    If you want to use Gusto when you change to an s-corp, you can use my referral code and we both get $100 https://gusto.com/i/dale545