S Corporation Basic Principles

The S Corporation basic principle is what happens in business stays in business…Another words, keep your personal expenses separate from the corporation, otherwise you will be commingling funds.  Never treat your corporation as a piggy bank as you should always document and treat the corporation as a third party.  A shareholder should reimburse expenses from the corporation to themselves in the form of a check paid in the year for it to be tax deductible.

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