When you own a LLC company how do you pay yourself?
Answers:
These are the various forms in which you pay yourself:
1. Salary given on a monthly basis
2. Bonus or profit share at the end of the accounting period
3. Director's fee
4. Dividends - from the accrued profits
With any kind of corporation, you are an employee of that corporation. You pay yourself as an employee, withholding the proper taxes and the company paying their share, including ss/med, unemployment, and any other applicable to your state.
It depends on how you elected to have the LLC file it's income tax returns. An LLC is not a corporation. It can elect to be taxed as a corporation or it can elect to be taxed as a sole proprietorship (since you said you "own a LLC company" it sounds like you are the only owner).
If it has elected to be taxed as a corporation it could pay you a salary. It could pay you a bonus, too, but that is also taxed as salary. It could pay you dividends if it elected to be taxed as a C corporation or it could pay you dividend-like distributions if it elected to be taxed as an S corporation.
If it is taxed as a sole proprietorship you can take out whatever money the business can afford to pay you and still pay its bills. You would probably call it owner draws. There is no withholding or social security on that draw.
As a sole proprietor you would pay income tax and self-employment tax (the self-employed person's social security tax) on the net profits of the business when you file your own personal tax return and report the business income and expense on Form 1040 Schedule C.
You would need to set aside enough money to pay your Estimated Tax payments at least quarterly since you would have no income tax withheld from a paycheck. You can pay more frequently than quarterly - IRS will be happy to take your money any time you send it.
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