Hello, I own a small video production company. I'm the only employee. It is an LLC taxed as an s corp registered in NJ. Up until now the company hasn't really made enough to pay myself but am at that point now. My question is if I have to go the payroll route or if there is another way I can pay myself. Since my business is fairly speradic (some months I hardly make anything others I do pretty well) I wanted to avoid a consistent payroll schedule. Here is what I was thinking, I was wondering if this is a possibility:
Costs for a project range from travel, freelance crew, stock images etc. and then on top of my costs there is a profit margin (markup) that the company makes. If I was part of the crew on a project (which is the case most of the time) am I able to pay myself directly (write myself a check) and then go the 1099 route like I would any of my freelancers so that the money properly gets taxed at the end of the year? Or does owning the business make me ineligible to do something like this? Even if it is possible how would others recommend I pay myself? Is this a bad idea?
Thank you!
Costs for a project range from travel, freelance crew, stock images etc. and then on top of my costs there is a profit margin (markup) that the company makes. If I was part of the crew on a project (which is the case most of the time) am I able to pay myself directly (write myself a check) and then go the 1099 route like I would any of my freelancers so that the money properly gets taxed at the end of the year? Or does owning the business make me ineligible to do something like this? Even if it is possible how would others recommend I pay myself? Is this a bad idea?
Thank you!
