General Question

gentleman2222's avatar

If I am the owner of a trade school, can I defer my salary?

Asked by gentleman2222 (49points) July 17th, 2019

I would like to ask someone who has a strong background in accounting:

I am starting a trade school in the U.S. (organized as an LLC) to train people to become venture capitalists and would like to know to following:

1) Can I get deferred compensation for myself – so that I can plow my salary back into the trade school?

2) Can I not get a salary – but instead, place my salary into an account where I can invest in startups if I want to?

I look forward to your answers!

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4 Answers

Tropical_Willie's avatar

You should get yourself an accountant.
Try SCORE they are all volunteers and many are retired executives of large companies.

Tropical_Willie (31440points)“Great Answer” (0points) Flag as…
janbb's avatar

Sent this to the one CPA that I know of on this site. Maybe she’ll weigh in.

janbb (63221points)“Great Answer” (0points) Flag as…
Love_my_doggie's avatar

The answer is amazingly simple.

As a member of an LLC, you cannot be a salaried employee. There can be no salary for you to plow back or place into an account.

If you’re the business’s sole owner, the LLC is a disregarded entity; all of your business’s items of income and expense are passed-through to you. If there are other members, the LLC is a partnership that divvies its income and expenses according to the ownership agreement. In either situation, you’re not an employee.

Love_my_doggie (13077points)“Great Answer” (2points) Flag as…
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