How to Pay Yourself As An LLC [By a CPA!]

By a Trusted CPA: How should you pay yourself as an LLC?

As a CPA and investor in multiple LLCs, I am going to tell you how I pay myself in an LLC and what I advise my clients.

Paying yourself as an LLC can be a little complicated.

If you pay yourself too much, you might risk putting your LLC in a bad financial situation.

If you pay yourself too little, you might be overwhelmed by all of the taxes you owe as an LLC.

And speaking of taxes, how exactly does that work when you pay yourself? Should it be deducted from your paycheck, paid quarterly, at tax time, or what?

If this is you, then stick around until the end because I am going to cover everything you need to know about both, the financial aspects of paying yourself and the tax side.

Video Outline for How to Pay Yourself as an LLC Owner:

Intro: (0:00)
How to Pay Yourself as a LLC: (1:35)
How Taxes Work for LLC Pay: (2:25)
How MUCH to Pay Yourself: (5:00)

[brandons]

These might be some of the best business videos I’ve come across. Well done.

[brendarodrigues]

Well Done! I’m as new as new can be. I mean, I literally give the name “beginner” a whole new meaning, but even so, especially without making much of a profit, I myself can strategically follow along. Thank you for speaking in a tone, volume, and tempo that’s easy to comprehend. From your own personal financial suggestions, I can gather that business and pay are doing fairly well. Are you accepting new clients? Let me be specific, such as myself, who is starting out. Not your company, Lyfe Accounting, but you. I trust and value your input, and I’m already familiar with you, your style, and your comprehensive knowledge of the subject matter. You’re indeed a living testament to and byproduct of your own hard work. That I'm strongly familiar with. It would be an honor and a complete pleasure to have such a mentor, friend, business associate, etc.
🙏🏾Blessings
BIG BIG L💞VE - 🌺InspirationByB, a branch and affiliate of ⚜️HairByB

[breew]

Pros: Great editing; the text and visuals make your explanations comprehensive and clear; the car example was a great analogy for how a business should be fueled by cash; reinvest back into your business.

Cons: none.

Considerations for future videos: videos about the difference between an LLC VS Limited liability partnership and how to pay yourself and your partner (who is not your employee); videos about what is an "operating agreement" and how to obtain it; videos about best ways to keep track of your business expenses throughout the year so your accountant isn't confused around tax time; videos about how often should we meet with an accountant throughout the year and how to be prepared for that meeting; videos about tax write-offs for when we market our business or hire someone to market our business; videos with more than one of you.

[ARome-nhlu]

So I'm new to the channel and after searching for many channels that share similar info I decided to subscribe to yours. I think its a little quick. I do think your speaking facts (where most channels are long and filled with fillers) but I got lost in all the great content you were sharing. I noticed your tone was flat and fast so no emphasis on either the next topic or key notes. Also the editor of your videos has background movement moving fast and if your multitasking like I do you don't really noticed the key points the editor probably trys to emphasize. Well this is definitely not knocking I'm simply sharing how I felt being new to the content and trying to learn. If I'm a idiot for saying I get it. Thanks

[thebentons]

I subbed because you have the most direct and digestible information after watching several other similar videos on multiple subjects. Great job man!

[leeberks]

I absolutely love this video! Someone finally explained it to me in layman's terms! Thank you 😊

[niftythriftyk]

My man, I needed this. It all made so much sense, and I could relate to it all. Taking the prior necessary precautions, I'm on the exact right track. I have you to thank for clarification. It's not like I didn't go with my instincts, but I just needed some solid information from someone who's proven. It's my first, and hopefully only venture, and I'm being super responsible, and major self discipline. Again, thank you for your time.

[squiglz]

This explained so much so easily . I was so stressed out thinking about small business accounting

[rglywyy]

Thank you, Thank you, Thank you. I wish we had known about your company when we started in 2019

[mommyscornerwithashley]

Great video! It was very thorough and right on time for me!!!

[majgibson]

Great video. Very easy to follow. And Very informative. Thank so much

[barcharlie]

I like your presentation style, very informative and easy to understand.

[loveuedify]

Thank you Sherman. Excellent information!

[funfactsexplorer]

This is an amazing video! So clear and almond hand help stepby step! I can't wait to sit down and see how much I get paid since I've never withdraw anything yet..

[jasminegreen]

Such a great video! Always so concise and relevant!

[glendineevans]

This was right on time for me. Thank you!!🙏 I always enjoy these types of videos; they are greatly appreciated!

[kimrossmariecoreas]

Okay so I definitely need to binge watch you because I work for a small business who is trying to grow and get on payroll and the owner wants to be on payroll to separate business taxes with his and our (the employee pays). Can you guide me on some videos relating to this? I would appreciate it! 😄

[laviniayale]

Thank you 🙏🏾 this channel always has useful info. I appreciate y’all

[attorneyconntessua]

Extremely helpful content. Thanks and please continue to add more!!

[bayarea]

Great content. So if my LLC make s100k profit, I should pay 100k tax as an individual under my social security number? Then what do i do with the Employer Identification Number that I created for my LLC to file tax return?