Just A Reminder For Those Of You That Actually Pay Taxes :)

[[BV]]

Originally posted by cd34
if a company has $150k profit, you take $50k in draw, is that $50k not part of the profit? i would think so but if you only drew 50k and you had 150k in profit, the 150k is the taxburden that bleeds thru.

If at the end of the year the net balance in the bank is $0, and you took $150k out in draw, didn't that $150k flow through to your tax return as profit? if the company made 150k the answer would be yes

Perhaps I'm missing the part where draw != profit.

At the end of the year your balance is never 0 as there should be other monies in that account that are not profit. Such as the start up money, monies owed to creditors, etc etc.