I recently created an LLC and was curious to how I should take a paycheck from the business account. Up until this point, I haven't taken a paycheck and will need to soon. The business has a bank account set up, but I'm not sure where to begin with regards to a "paycheck" and payroll - I'm the only employee. Anything special I need to do, or can I just write out a check and label it?
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LLC owners are not technically considered employees by the IRS. That means you don't have to fool with payroll issues. You can simply write yourself a check from your business bank account. This is known as a "guaranteed payment". For more on that see How does a business owner take money out of their business. Although you won't have to fool with payroll issues, you will still be responsible for paying self-employment taxes, and possibly paying estimated taxes on your income on a quarterly basis. See How many times a year do LLC's have to file taxes? for more on quarterly estimated taxes. |
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