No wages or distributions tax question I just started a Pest Control business in April of 2008. I am waiting for a non-compete agreement to end before I do business in a specific area. The business gross income for 2008 was very small because I've been waiting for the non-compete to end <$15,000. My expenses were over $15,000. I didn't pay myself a wage or give myself any distribution because the <$15,000 was going out to build infrastructure. I also used money for the business from my personal credit cards in the form of cash advances then depositing the cash in the business account. I did pull cash out of the business account using an ATM to pay some expenses but I did a very poor job keeping records. My questions are: 1. Is it a rule that I must pay myself a wage? 2. What should I do with the cash withdraws? 3. The cash advanced deposits from my credit card; are they considered income to the business? or can I somehow make them a loan to the business? 4. Do I owe any Taxes to the State/Fed Gov?
I would really appreciate any advice.. thanks.
Dan |