SCORE: Business Owner Compensation: How It Works for Sole Proprietors, Partnerships and Corporations

Paying yourself as a business owner isn’t as simple as transferring money from your business account to your personal account. How you pay yourself matters, and depending on business structure, using the wrong method can lead to unexpected taxes, reporting problems or costly corrections.

In this webinar, experts from Block Advisors by H&R Block will explain how owner compensation works for sole proprietors, partnerships, S corporations, and C corporations. You’ll learn which compensation methods apply to each structure, when payroll may be required and why accurate bookkeeping matters when recording owner payments.

Block Advisors will help you learn how to:

• Identify which compensation methods apply to your business structure
• Compare owner draws, distributions, guaranteed payments, wages and dividends
• Understand reasonable compensation requirements for S corporation and C corporation owners
• Determine when reasonable compensation requirements may apply
• Recognize tax and payroll consequences before taking money from the business
• Understand the bookkeeping and records needed to support owner payments