How to Pay Yourself as an LLC

How to pay yourself from your LLC, regardless of what kind of LLC you operate.

How you pay yourself from your LLC, and how you file your tax return, will vary based on the type of LLC you are.

There are single-member LLCs, multi-member LLCs, LLCs taxed as a partnership, LLCs taxed as an S-Corporation, and so on.

And the tax implications of these types of entities may influence how you pay yourself.

In this video, Sherman the CPA goes over each type, how taxes work, and the best way to pay yourself from your LLC in general.

If you own an LLC and need some clarity in these areas, stick around for the full video.

Things to consider when paying yourself: (0:00)
Different types of LLCs: (0:57)
How taxes work for LLCs: (3:40)
Paying yourself from LLC: (7:44)

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Disclaimer: The information provided in this video is for informational purposes only and is not meant to take the place of professional legal, accounting, or financial advice. If you have any legal questions about this video or the subjects discussed, or any other legal matter, you should consult with an attorney or tax professional in your jurisdiction (i.e. where you live).

[yeseniasplace]

I could watch this guy forever. He's very articulate and I love all this great info.

[lmurjohnson]

If I have to watch this episode every day I will you couldn’t explain it any better 👍🏽

[ryanthegamercmaa]

can you do a video on steps tp become a S-corporation and your video is very helpful thank you

[tamiekamaxwell]

Yeees! This was right on time, just golden information! Thank you for making it so clear. More info on passthrough entities, please.

[shan.unprocessedinfo]

Very good and well explained. There were a couple of things I didn't know. Thanks for the tips about being prepared for the unexpected. Great Video!

[Photillustrator]

Great info. Love all your videos and tax information. Thank you for posting

[momscandaytrade]

i enjoy you articulation and simplification. excellent! THANK YOU

[transcend]

Great info!
Please do a video on Trust formation- why & when?

[DefiSpecialOps]

#replay - Value Bomb - Great job explaining this & keeping it simple! 😎🙏👍🏽

[juan_]

When having a UPS account and buying postage to ship out packages consider business expense

[FORTMOUD]

Regarding fund for medical and other expenses ...do they need to be taxed?

[choicedesigns]

I was following you until the very end when you said we have to use a payroll system. You just said you can pay yourself with an owner’s draw (cash withdraws, transfer etc) then you suddenly add in at the end that we need to use a payroll system. This video should have been about the payroll system then.. can you clarify?

[OnlyAmv]

Will a small business owner have to pay quarterly if they didn’t make much for the first quarter? Is there a threshold or they pay regardless of how much they made? Great video by the way.

[phyzix_phyzix]

What is considered a "reasonable salary"? If I'm the CEO of the S-Corp LLC but don't make enough to pay myself a CEO salary what are my options?

[kingstaste]

How do I know how much money is supposed to go to taxes? And forgive me for my ignorance but like for an example for every $1, 000 should I be putting away $100 for taxes. Also my business is registered in the state of Delaware which is a tax break state would you happen to be able to tell me how that works when you have a business?

[transcend]

Can you elect the "tax status" each time filing taxes every year?

[GAM_Topics]

at mark 4:15 when you say BR (minus) BE (equals) B.T.I. ---> quick question regarding that (and hopefully you can anwwer it, "in general"): Do we pay taxes on the FULL revenue FIRST, but "expect" to receive a refund on the expenses? Or do we just pay taxes on the amount of B.T.I that we have already calculated? Thanks!

[transcend]

Too many Bots on the channel. You need to block them.