Picking A Payment Method

You need to decide how you will pay yourself. It’s worth noting that IRS ownership compensation requirements differ depending on your type of business entity:

• Sole proprietorship
• General partnership: An entity with two or more business owners. 
• Limited partnership: An entity with two or more business owners, with at least one being a limited partner.
• C corporation: An independent legal entity separate from the business owners.
• S corporation: An independent legal entity separate from the business owners; owners report revenue as personal income.
• Limited liability company (LLC)