(mtlynch.io)

1071 points mtlynch | 1 comments | 16 Feb 24 15:07 UTC | HN request time: 0s | source

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ein0p ◴[16 Feb 24 16:47 UTC] No.39399519[source]▶

FYI: You can’t “not draw a salary” and get that profit out of the company. IRS mandates that you pay yourself a reasonable amount, and pay (eye watering amounts of) taxes on that amount. You can’t circumvent any of that by just taking everything as distributions.

replies(2): >>39399540 #>>39399630 #

1. mtlynch ◴[16 Feb 24 16:49 UTC] No.39399540[source]▶

>>39399519 #

Are you sure you're not thinking about corporations?

TinyPilot is a single-member LLC, so all the income is on my personal tax returns.

When I said I don't draw a salary, it was to prevent confusion about whether payroll includes me.

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My sixth year as a bootstrapped founder