If I own a company and I salary myself, is my money taxed twice?

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I'm new at this. Since I'm just now making some decent money, I registered a limited liability company in my state. I don't really understand how taxes work with that, though. Is my company taxed and then my "salary" or whatever I "pay" myself taxed, too? Based on what I've read, I, as the sole manager/member, can just claim income on my regular tax filing, so it'll only be taxed once (as regular income would be).

But what if I adopt more members in the future? The LLC won't be classed as a disregarded entity then--so is my money taxed twice?

Thanks
 


About said:
I'm new at this. Since I'm just now making some decent money, I registered a limited liability company in my state. I don't really understand how taxes work with that, though. Is my company taxed and then my "salary" or whatever I "pay" myself taxed, too? Based on what I've read, I, as the sole manager/member, can just claim income on my regular tax filing, so it'll only be taxed once (as regular income would be).

But what if I adopt more members in the future? The LLC won't be classed as a disregarded entity then--so is my money taxed twice?

Thanks
Click to expand...

Company tax is generally paid only on gross profits (ie. after salaries and expenses are paid).
 
About said:
I'm new at this. Since I'm just now making some decent money, I registered a limited liability company in my state. I don't really understand how taxes work with that, though. Is my company taxed and then my "salary" or whatever I "pay" myself taxed, too? Based on what I've read, I, as the sole manager/member, can just claim income on my regular tax filing, so it'll only be taxed once (as regular income would be).

But what if I adopt more members in the future? The LLC won't be classed as a disregarded entity then--so is my money taxed twice?

Thanks
Click to expand...

If you want a short answer:
LLC, S-Corp - taxed once (pass-through).
C-Corp - taxed twice.

So, in your case, salary + profit - both get taxed only once.
 
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zxcvb said:
If you want a short answer:
LLC, S-Corp - taxed once (pass-through).
C-Corp - taxed twice.

So, in your case, salary + profit - both get taxed only once.
Click to expand...

Thanks. I'd give you rep instead of making this redundant post, but I've hit the 24-hour limit.
 
Quick related question: For sole-proprietorships/DBA's there is no distinction between company and individual right? So profit = salary, therefore taxed once?
 
YouDontKnowMe said:
Quick related question: For sole-proprietorships/DBA's there is no distinction between company and individual right? So profit = salary, therefore taxed once?
Click to expand...

Taxation: only once, for salary + profit.
Distinction between company and individual in this case: mostly, no. No protection, practically.
 
Idea from my side: if you're making serious money, consider going offshore and you'll be surprised what kind of possibilities pop up ;)
 
LLCs and S-corps offer civil protection, but tax-wise behave as if they don't exist for the most part. The S-corp benefit comes with the SE-tax.
 
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