I have an accounting question and would greatly appreciate any suggestions or advice. Here it goes: I have an S-Corporation (I am the president). I have one DBA for a tanning salon I own. I have another DBA for my online business. I have a Tax ID # for my corp. I have separate bank accounts for each DBA. I just started the online business. Just opened the bank account. There are no employees (except myself). I just made a large sale (around $45,000) and will be putting the check into this new bank account. My questions start here: Is there a way that I can write checks to myself (my personal account) as like a "bonus," or something? I do not want to pay myself a salary (I don't know how steady or how much money will be coming in), and I don't want to pay myself hourly either. I really only want to be able to write myself checks when I need/want some of the money. Is this possible or am I absolutely going to have to do it by giving myself a regular bi-weekly or whatever paycheck? Thanks so much for any help.
If the business is a DBA, all of your net profits are your self-employment income on your 1040. A sole proprietor SHOULD NOT take wages. However, you can take draws from your income as much as you like. Why do you have the S-corp? Is it for another business?
Our first business was our tanning salon. Our accountant and lawyer both advised us to set up an S-Corp. The tanning salon has its own DBA under the S-Corp. My online business has its own DBA unders the S-Corp as well.