MSU Red Cedar Message Board

It will be hard to do biweekly based on what you are bringing in. I would say set it up so that each is getting some kind of basic salary that you get paid every two weeks (an amount that is not ultra low, but low enough to be sure that it will be within your draw range - barring super low billables). Then also do a quarterly, biannual, or annual draw above and beyond the salary from the remainder based on percentages.

I agree. The goal is to give yourself a regular paycheck off which you can survive and still keep the firm functioning. We calculated our basic salaries added to our monthly bills to get the "nut" we need to keep the doors open. Hopefully, over time, there is leftover money from which you can pull bonuses. That's where the real fun begins among your partners: figuring out the percentage draw for each

Well, we had been just taking out what each of us was "owed", but I wanted more of a regular pay structure. I can probably do this, as the checks are starting to come in with some regularity. My concern/question, is what is best for tax issues or implications by the end of the year?

If you don't have an accountant, get one. He/She can explain payroll taxes better than anyone on this board.

OP: Hey guys. I just got advice from the RCMB on how and when we should deposit payroll taxes!

Partners: That's great! One less thing to worry about! Who needs a bookkeeping department or an accountant!!!

I do a monthly draw at the end of the month. When I had others working, we did the same, with a quarterly bonus.

The worst thing that happens is you get caught, go to federal prison, and get conjugal visits.

Make sure you give your self bonus $$$ before April 15th, June 15th, Sept 15th and Jan 15th of the following year to pay 1040ES Federal taxes.

first of all, congratulations. you are going to do great on your own. i can tell by your personality. you gay guys are good at paying attention to details.

secondly, are you an llc? i'm not a tax attorney, but your structure may give more insight into what is the best way to pay yourselves.

thirdly, do you and your bros have an agreement on covering the overhead? also, have you considered referral compensation? one of you may be bringing in all the cheddar and providing the others a lot of off fall.

Thanks Wood. Our structure currently is an PLLC, but I think we are taxed as an S corp?? Does that make any sense at all? Like I said, I have no idea. Meeting with an accountant next week. Just was hoping to get some insight from all the wisdom on this board.

And, hell yes, we hired a hot secreatary. I have to have something to do on the slow days.