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August 29
Harborlight elected S-corp status in January, which was the right call at this revenue. It does come with an obligation nobody enjoys: Nina has to be on payroll at a defensible salary before any distributions.
Memo attached with the range and the reasoning.
August 31
She has been taking owner draws all year. How much of a problem is that?
September 1
Fixable, and better fixed now than in January. We run a catch-up payroll before year end covering the whole year's salary, withhold properly, and reclassify the draws already taken as distributions against it.
Done before 31 December it is simply how the year ran. Done after, it is an amended payroll filing and a conversation nobody wants.