How To Pay Myself From My LLC?

Determine your LLC’s tax classification

Pay yourself as an owner’s draw if your LLC is taxed as a sole proprietorship or partnership

Pay yourself a salary through payroll if your LLC is taxed as an S corporation

Pay yourself a salary through payroll if your LLC is taxed as a C corporation

Transfer money from the business account to your personal account for owner’s draws

Keep business and personal finances separate

Record every payment to yourself in your accounting records

Set aside money for taxes on your self-payments

Follow your LLC operating agreement

Consult a tax professional or accountant for your specific situation

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