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Lauxa · 01-14-2007, 03:17 PM

I have heard that if you own an LLC that it's better to take dividends than to become your own employee. Or to employ yourself to the extent that it is legal necessity (minimum wage?) and then to take dividends to cover the rest of your expenses. The reason being that you have to pay employment taxes on any money that you pay to an employee. Are you going to be using this strategy at all?

01-14-2007, 03:17 PM	#3 (permalink)
Lauxa Family Member Join Date: Nov 2006 Posts: 2,545	employment vs. dividends I have heard that if you own an LLC that it's better to take dividends than to become your own employee. Or to employ yourself to the extent that it is legal necessity (minimum wage?) and then to take dividends to cover the rest of your expenses. The reason being that you have to pay employment taxes on any money that you pay to an employee. Are you going to be using this strategy at all?