Owners Distributions: What You Need to Know

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  • Опубліковано 12 січ 2025

КОМЕНТАРІ • 51

  • @SavantStudio
    @SavantStudio 8 місяців тому +1

    Thanks!

  • @autugula974
    @autugula974 2 місяці тому

    Thank you so much, your videos are so helpful. I am a first time bookkeeper and learning as I go working with a company 😆 every week I reference your videos

  • @jodiblackwell9698
    @jodiblackwell9698 5 місяців тому +1

    So Glad that I found your tutorials, which I have subscribed to. You explain everything so well, I still have a lot of your tutorials to watch, I am learning so much from you, so a very big thankyou.🙂

    • @ClaraCFO
      @ClaraCFO  5 місяців тому

      Love to hear it!

    • @AshMalik
      @AshMalik 3 місяці тому

      I absolutely agree! I am also so happy that I found your tutorials.

  • @sarakappler3059
    @sarakappler3059 8 місяців тому +3

    Great video as always.

    • @ClaraCFO
      @ClaraCFO  8 місяців тому

      Thanks for watching :)

  • @bookeepingpros
    @bookeepingpros 8 місяців тому +1

    Thank you, could you show the next step iie. when you clear out the balance sheet line item for the distribution to retained earnings?

  • @dgvt7845
    @dgvt7845 8 місяців тому +1

    Your content is so helpful. Thank you.

    • @ClaraCFO
      @ClaraCFO  8 місяців тому

      I’m so glad!

  • @rzen798
    @rzen798 6 місяців тому

    Could you please create a video detailing the entire process of what to do when you have a client for the first time as a bookkeeper? Include the initial steps, the do's, and the don'ts.
    We would really appreciate it!
    Btw, thanks for your video we really appreciate it. Very informative and helpful.

  • @accountinglearning
    @accountinglearning 7 місяців тому +1

    Great Video, Thank you so much.

  • @colsar
    @colsar 6 місяців тому

    As you mentioned, an S-Corp owner is probably taking a salary and distributions. You showed us to set the owner up as a vendor for the equity distribution. I assume the owner is set up a 2nd time as an employee for the W2 portion?? Thanks! Joe.

  • @SavantStudio
    @SavantStudio 8 місяців тому +1

    Thank you! I have learned SO much from your videos. I own an LLC with S Corp tax status. I am the only owner and only employee. I have already set myself up in QB as a W2 employee. Am I understanding you correctly that I also need to set myself up as a vendor when I categorize my Owner's Distribution bank transactions? So basically I will be in QB as both an employee and a vendor? Thank you!!

  • @PamelaLewerenz
    @PamelaLewerenz 8 місяців тому +1

    Would love an additional video on how much an owner should think about drawing from the profits...

    • @ClaraCFO
      @ClaraCFO  8 місяців тому +2

      Working on this!

  • @clownprincetv7793
    @clownprincetv7793 8 місяців тому +1

    Thank you for this! I am a new subscriber and want to learn from your videos.

    • @ClaraCFO
      @ClaraCFO  8 місяців тому

      Thanks for being here!

  • @williamhdenney3897
    @williamhdenney3897 8 місяців тому +1

    Really valuable information.

  • @MelissaCalandro
    @MelissaCalandro 7 місяців тому

    Very helpful info!

  • @wilsoncollins-byrd5248
    @wilsoncollins-byrd5248 6 місяців тому

    Great video, thank you!🙏🏽

  • @amyc.3688
    @amyc.3688 8 місяців тому +2

    How is the tax paid for distributions? Is it more beneficial for an owner to take a higher distribution vs a lower salary? Which one is lesser on the tax bracket for an S-corp?

    • @ClaraCFO
      @ClaraCFO  8 місяців тому +1

      You need to pay yourself a "reasonable compensation" in W2 wages as a S-corp owner. The profits of the business will be taxed regardless of how much you take for distributions.

  • @debrathompson554
    @debrathompson554 8 місяців тому

    Love your channel! I would love to hear about how to grow your business.

    • @ClaraCFO
      @ClaraCFO  8 місяців тому

      thanks for being here! Noted!

  • @Pink-Coconut23
    @Pink-Coconut23 8 місяців тому +1

    What would be an appropriate proportion for an owner of an S Corp. which usually pays herself via W2 to instead split her annual income between W-2 and distributions? Do you have a video that talks about that? Thanks!

    • @bruno2006
      @bruno2006 8 місяців тому

      40/60

    • @ClaraCFO
      @ClaraCFO  8 місяців тому +1

      There is no rule about percentage breakout between the two. You need to pay yourself a "reasonable compensation" in W2 wages as a S-corp owner. We are planning more videos on reasonable compensation!

  • @docash
    @docash 8 місяців тому

    Thank you for this, I've been wondering how to set up a draw....I have used Quicken for personal accounting for years, and just started a new sole proprietorship. I plan on using quickbooks for isolation of business from personal, but can you maybe discuss is there a pathway to tracking both on quickbooks? Or is it better to maintain complete separation?

    • @ClaraCFO
      @ClaraCFO  8 місяців тому +1

      good question. I recommend separating them completely - you can keep your quicken for personal and set up a QBO file for your new business (congrats by the way!). I use Monarch for my personal finances and QBO for the business. I've thought about if it's even possible to do both in QBO, and it really isn't.

  • @jq2561
    @jq2561 2 місяці тому

    Doesn't a distribution reduce the percentage of ownership of the individual receiving it if other partners are contributing that amount?

  • @BrittanyBrown-yp1tk
    @BrittanyBrown-yp1tk 8 місяців тому

    I would love a how much to distribute as OD video

  • @Bill56136
    @Bill56136 8 місяців тому +1

    How about business owners drawing money out of the business account and use the money to pay off a business vehicle loan? It is still considered an owner draw?

    • @ClaraCFO
      @ClaraCFO  8 місяців тому

      No, the business vehicle loan should be on the balance sheet as a debt, and that payment would be recorded against the loan to reduce the loan balance.

  • @truthseeker6610
    @truthseeker6610 8 місяців тому +1

    If the business is at a "loss" where does the "distribution" funds come from?

    • @ClaraCFO
      @ClaraCFO  8 місяців тому

      Existing cash balances. This could be from past profits that were retained in the business or it could be coming from borrowed funds.

  • @sunlightbtc247
    @sunlightbtc247 3 місяці тому

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    @sunlightbtc247 3 місяці тому

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  • @JettingChen
    @JettingChen 5 місяців тому

    10:20

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    @sunlightbtc247 3 місяці тому

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    @flyzone7441 8 місяців тому

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    @sunlightbtc247 3 місяці тому

    My info blocked and I am the stakeholder and shareholder

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      @sunlightbtc247 3 місяці тому

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      @sunlightbtc247 3 місяці тому

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    @sunlightbtc247 3 місяці тому

    Almost 5 years already NO INCOME at all 0 from anywhere we've been homeless

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    @JettingChen 5 місяців тому

    !!

  • @flyzone7441
    @flyzone7441 8 місяців тому +1

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