How to File to Get the Most PPP Money?
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.
What to Do if You Can’t Prove Payroll
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.
As always, you can also book a free consultation to speak with us too if you are the planning type!