S-corp taxes? Buffalo Accountant

[Shaun Carl]

My partner and I just sat down with an accountant in Buffalo and were not impressed with them. We are in the process of closing on one property and will be picking up the paperwork on another in a couple days. Any help with some questions below would be greatly appreciated or even a recomendation on an accountant in the Buffalo area would be awesome.

I have heard that for an s-corp you should take a "salary" throughout the year. Is this correct or can you wait till the end of the year?

Once the year is over, is it best to leave the "profit" in the checking account or should this be paid out to my partner and I. How does this affect taxes for the company vs our personal taxes.

We are just starting and are trying to not mess anything up and screw ourselves over come the end of the year.

[Steven Hamilton II]

Originally posted by Shaun Carl:

Steven Hamilton II
Thanks. I think I am starting to understand. Our business is set as a 50/50 split between my partner and I. We currently are closing on one property tomorrow and another in the next couple weeks. They are both 4 units that should cash flow 800-1000 each a month. We are using a property manager for both. What would be considered a reasonable salary when all we do would be to collect rent checks and pay bills?

Is this were we would need a CPA? Can we wait and see how much we make at the end of the year before deciding? We are hoping to roll all money into more properties as we grow.

Assuming you are JUST holding rentals, you should NOT be holding it in a C-corp. It should be a partnership as there will be no SE taxes to deal with and you will only be subject to Ordinary tax rates. There would be no "reasonable" salary to deal with.