Get money out of C corporation

Many business owners incorporate C corporation because they hear that it has many tax benefits and it is the best and right thing to do. However, unlike for sole proprietorship, now the money earned from the business belongs to the C corporation, not to the business owner. So, how does a business owner get money out of the C corporation?

Separate taxing structure of C corporation

One of the greatest benefits of incorporating a C corporation is the separate taxing structure of C corporation. That means the business owner saves on taxes since corporate tax rates are lower than personal tax rates. So, instead of the business owner getting paid in his or her name, the C corporation gets paid.

How the business owner can get money out of his or her C corporation

There are a few ways a business owner can get money out of his or her C corporation for personal use and still benefit from the separate tax structure and pay less taxes to the IRS. The following ways are how the business owner can get money out of his or her C corporation.

• tax free benefits by tax deduction of business expenses
• salaries to business owner from C corporation
• loans to business owner from C corporation
• money partner

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