Paying Yourself with an LLC

Discussion in 'Business Operations' started by FineEdgeLawnsMD, Mar 27, 2014.

  1. FineEdgeLawnsMD

    FineEdgeLawnsMD LawnSite Member
    Posts: 39

    Seeing an accountant Friday but I was wondering first hand how you guys run your LLC's? Since I'm a one man operation, I don't have to worry about paying employees and all but do you smaller business owners pay yourself each week/bi-week, or how do you go about doing it? I guess it depends on what state and the different tax rules and all but this is my first year as an LLC and I was just trying to get an idea so far. Thanks for your input.Thumbs Up
     
  2. Paineless Creations

    Paineless Creations LawnSite Member
    Posts: 17

    You can use the owner draw and investments account, when you take money from your bank account and put money in your biz, I always had a linked personal account so I could transfers easy back and forth, as you get bigger and have employees. I have become a S-Corp and I write myself a check every other week with my rest of my employees...
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  3. BruinLawn

    BruinLawn LawnSite Member
    Posts: 86

    Subscribed
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  4. rbljack

    rbljack LawnSite Senior Member
    from Texas
    Posts: 702

    Subscribing here too. As a sole proprietor, ive wondered the same thing. I was doing owners draws for myself last year, but was not "paying myself" a regular paycheck on a weekly, biweekly, monthly basis. I simply took money out of the net profit as time went by. Im scheduling to see my accountant soon, and get taxes done, so hopefully I can get some light shed onto the subject.
     
  5. ReddensLawnCare

    ReddensLawnCare LawnSite Bronze Member
    Posts: 1,652


    Recently did the same thing
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  6. grassmonkey0311

    grassmonkey0311 LawnSite Silver Member
    from MD/NC
    Posts: 2,246

    From what my accountant told me, I take an owners draw. Whatever I want it to be. He said any money set aside (10% a week or whatever you want) should be put into a savings account under my name, not the company.

    Not sure if that helps, my accountant was shady as hell and I am looking for a new one.
     
  7. intrigue12

    intrigue12 LawnSite Member
    Posts: 93

    The thing with paying yourself by a payroll check that sucks the most IMO is the double tax. Not only do you have to withdraw money from your paycheck but your company than has to pay the payroll tax for paying you. Drives me crazy!!
     
  8. CreativeLawncareSolutions

    CreativeLawncareSolutions LawnSite Silver Member
    Posts: 2,025

    Shady accountants are a good thing IMO.
     
  9. whiffyspark

    whiffyspark LawnSite Fanatic
    Posts: 6,100

    Being solo it won't matter
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  10. AllBrad

    AllBrad LawnSite Member
    Posts: 73

    Decide how much you want per year. Divide by 52 or 26. Write yourself a check weekly or every other week. Call it an owners draw. Pay estimated taxes. Settle up at tax time. If you over pay yourself, adjust for the next season. Remember to pay your company. W2s always get paid first.
     

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