Wondering how to pay yourself as a singlemember LLC? We’ve got you covered!

The main way to pay yourself is through Owners Draw, which means you’re withdrawing money from the business for personal use.

But why an Owners Draw? For Federal Taxes, a singlemember LLC is handled just like a soleprop.

How much can you take out? Up to you. Just make sure that whatever you take out is in your company bank account and that you have accounted for any taxes you may owe down the road. You can receive the draw through a check, electronic money or cash withdrawal. Just don’t forget to keep records.

Fun Fact: As an owner of an LLC, you can actually choose to pay taxes like an SCorp. If you elect this treatment, you should pay yourself as an Employee on payroll. Make sure to check out our video on SCorp to learn more.

To learn more about payroll and owners draw, check out these articles:

[READ] Want to Do an Owner’s Draw? Here’s the Overview You Need https://goo.gl/M8s8U7

[WATCH] How to Pay Yourself as a SoleProp https://goo.gl/8wnc7z


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