If you own a company and pay yourself as a contractor...?

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on3via

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If you own a company and pay yourself as a contractor, so therefore you don't pay PAYG, the contractor then pays personal income tax on this via their tax return. Is there anything else to consider or be aware of as opposed to paying from the company through PAYG or share dividends?
 
If the company is a C-corporation, you can do that.......the company as a taxable entity (much like yourself) is hiring you for a job.......

This is instead of taking a paycheck you work on a 1099 instead......

The other corporations are different as the income passes through the shareholders/owners.

I would contact an accountant or an attorney with corporation experience to find out if that is legal so you don't put yourself into a position with the IRS.
 
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