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Categorizing a salary withdraw from a business to personal account as an S-Corp

mmilian
mmilian Member ✭✭
I have an LLC and will file as an S-Corp and I would like to make sure I categorize my salary withdrawals correctly both in my business and personal accounts in order to capture the salary, business expense and tax accruals accordingly.  

I have Quicken 2018 Business and Rental Property Edition and I am hoping that someone can provide me with the suggested step by step instructions on how to accomplish this. 

Thanks in advance!

Comments

  • q_lurker
    q_lurker SuperUser ✭✭✭✭✭
    edited June 2018
    Quicken is not structured to directly support S-Corp, LLC, and similar business structures.  It focuses the business side on sole proprietorships where the taxes are filed through an individual's Form 1040 Schedule C.  As such, trying to use it for a S-Corp can require some creativity and hoop-jumping.  I won't be able to provide step-by-step instructions for a suitable structure for your situation.  

    Somewhat strictly speaking, you and your business finances should be in two separate files - they are two separate tax-paying entities.  In the business file, you can certainly create a category for salaries that the S-Corp pays to you and any other employees, along with categories (or accounts) for tax withholding and other employee related expenses.  There is no structure in Quicken to support shareholder capital accounts.  

    In your personal file, you would then create a similar and redundant "paycheck" transaction.   

    HTH
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