​HOW TO TAKE MONEY OUT OF S CORPORATION

[John Boby]

HOW TO TAKE MONEY OUT OF S CORPORATION AND INVEST IT IN THE REAL ESTATE BY OPENING A NEW LLC.

[Brandon Hall]

@John Boby @Darren Budahn you can simply take the money out. I require my clients to issue a statement to themselves declaring the distribution of $xx per share. That just helps in the event of an audit.

Cash distributions from an S-Corp are not taxable as the S-Corp is a pass through entity and you've already paid taxes on the monies. Real estate distributions, however, are taxable.

The only caution is to make sure your salary aligns with how much you are distributing from the S Corp. For instance, if you distribute $100k and pay yourself a $20k salary, you may have a problem.