How to issue a W2 to myself?

[Account Closed]

Happy New Year everyone! Let 2016 be a year of learning and prosperity for all.

I have a question and I would like someone who has done this and has experience with it to help me out. 

I have been acting as a sole proprietor on flips and wholesale deals for the major part of 2015. During last year I quit my job to focus mainly on investing and due to the lack of W2 I have been getting TONS of NO's from major banks because I can not show them a W2. There are other ways to get loans, hard money, private funds, whatever those I don't have an issue getting but I would really like to learn what the best option is when it comes to creating an S corp or some kind of LLC that would allow me to take the proceeds of my sales and use them to pay myself a salary and issue a W2 at the end of the year.

If anyone out there knows what would be the best step forward please let me know! I would love to get this set up and going for 2016.

Thanks in advance,

Shon

[James Hamling]

Shon welcome to the world of making $$$, and being in some ways an outcast as 80% are still worker bee's and so the system is in some ways designed for them. 

Here is the deal, your new so the truth is its gonna be a couple or few years in limbo because in the eyes of financial institutes you gotta prove yourself, and hey lets be real, that's rather legit as a concern and requirement right.

Most of us have gone thru the same thing as most of use didn't start with a pile of cash, and it means you gotta grind, your gonna have to think and work creative until you have built that reputation and track record that than one day it wont be such an issue, than in what seems in no time there going to be throwing money at you left right and center, it funny how the tables turn, but its a journey. 

I would suggest sucking it up and working thru it, not trying to skirt it because to do so will be costly and especially in those early years its priority #1 to keep and grow all the working capital possible, and than to leverage it. 

If your heart is set on it though, than you can either elect the option of an LLC that pays and tax's as a s-corp (few do this), or elect to convert the LLC to a s-corp. As a corp you will have double taxation; the company pay tax on profits, and than you as an employee pay taxs on your w2 income (unless you or your CPA does some strategic moves which by this thread I assume are not options in your wheel house a.t.m.)

Again I can't stress how much I urge the best option of staying LLC, post near to no revenues or even loss's, work, grow, and grind it out.

I will add that any $$$ needed for operations of business wont require a W2, so I am seeing this from the stance of a W2 for some consumer debt creation, stuff that can wait. (to understand further see threads on building business credit rapidly)