If you are looking at how to file to get the most PPP money between filing as a Sole Prop vs. an S-Corp, C-Corp, B-Corp, LLC, or Nonprofit, I can help.
The simple answer is it does not matter.
All entity types are going to give you 2.5 times the amount of your monthly payroll.
If you can prove actual payroll through showing that you paid payroll taxes last year, then I suggest that you use those numbers. They will then give you 2.5 times the amount of your monthly payroll in order to keep you alive.
Now, if you can’t prove that, file as a sole proprietor and take your owner’s draw. If you don’t know what an owner’s draw is, I can explain. It’s when you, as the owner and sole proprietor, draw a certain amount of money from your company each month to pay yourself. That does not include payroll taxes, and it does not include any type of filings. This typically is shown on your balance sheet if you keep your books and that is what you want to show, when you want to show your payroll as a sole proprietor. Show your draw, plus any consistent contractors that you have.
I have a CPA business, so I have a bookkeeper and I have a personal assistant. They are dedicated workers. But, I have them on contract, so I included their money as part of my payroll. When I showed them that my monthly payroll was $5,000, I am qualified to get 12,500. That’s it.
To learn more or if you would like clarification on the how to file to get the most PPP money please send us an email at [email protected] or contact us here.
Wiley Financial Services is a full-service accounting firm, specializing in Business Appraisals and Business Valuations, that has over 20 years of experience with a variety of industries ranging from restaurant, biomedical, manufacturing, advisory firms, nurseries, event design firms, IT firms, and many more. Wiley Financial is based in Oceanside, CA and we primarily service clients across the Western United States from our San Diego office.
