Paying Yourself as an LLC | Four Tips to Pay Yourself From Your Business

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All Up In Yo' Business with Attorney Aiden Durham

Күн бұрын

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In this episode of All Up In Yo' Business, I'm giving you four tips on how to pay yourself as an LLC. If you aren't sure how to pay yourself as a new business owner, you have come to the right place. We'll cover what to do and what NOT to do when it comes to paying yourself as an LLC, including single member LLC taxes and more!
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#AllUpInYoBiz #businesstips #smallbusiness
00:00 Intro
01:08 How much to pay yourself depends on how your business is taxed
03:00 Make it easy to pay yourself
04:25 Set some money aside for taxes
05:43 Have a separate business bank account
08:22 Outro

Пікірлер: 107

@chipleach Жыл бұрын

I know “technically “ you’re not MY lawyer but I mean, you’re my advice lawyer. I appreciate the pro bono advice!

@jakebsoutdoorservices 4 ай бұрын

i’m pretty tax illiterate but this has been the most clear video i’ve watched yet

@ScotttheCyborg 6 ай бұрын

My dad did EVERYTHING from the same checking account. He had a money market account that he would put excess funds in because of interest, but as one of his businesses was private lending that account churned a lot. But all his house bills and ALL of his separate businesses operated out of the same personal account. Even as a sole proprietor, that's a bad idea. Collectively, he made a profit, but I couldn't begin to tell which business made or lost money. There's absolutely no way he could have passed an IRS audit. Before he died, we created an LLC. That LLC has an operating and a savings account. I run three DBAs and each has its own account, and I just created an LLC which will have both an operating and a savings account. I don't see any other way to truly keep the accounting separate.

@FranzCritchlow Жыл бұрын

Piercing the Corporate Veil is a no, no. So important!!

@Dedalus94 5 күн бұрын

This was extremely informative and succinct. Thank you!

@HyperUpscale Жыл бұрын

Nice! Very well clarified what a Single member LLC is ... finally I got it. 🥳🎉

@Strawhatboy_e 4 ай бұрын

Your content is the best! Thankful for you🤞🏾🙏🏾

@BooktotheFuture-LLC Жыл бұрын

Great info, thank you for sharing!!

@creativerecreations1 Жыл бұрын

such a valuable video. thank you!!

@pandachat1483 9 ай бұрын

Thank you! That was very helpful.

@danowelton3221 6 ай бұрын

All up in your business!!! ha love this channel now subscribed.

@melodybrown986 6 ай бұрын

So helpful! Thank you!!

@keyrosellc Жыл бұрын

Omg I❤❤❤❤your videos. You just explained so much in a simple way

@justinl4054 3 ай бұрын

Great info! I’m just starting out and needed this!

5 ай бұрын

Best explanation I’ve come across! Thanks!!

@neavo8421 4 ай бұрын

Thank you so much for enlightening me on something I was worried about! Will be subscribing.

@dunkley7776 Ай бұрын

Powerful advice. Thank you! Subscribed!

@Dandiggas Жыл бұрын

Great tips as always!

@flagrant-clip Жыл бұрын

Thank you for your comment, love ❤️ and support 🥰 to a good investment and advise 𝚝𝚎𝚡𝚝 𝐁𝚛𝚊𝚢 𝐂𝚊𝚛𝚜𝚘𝚗 🄾🄽 Tᗴᒪᗴᘜᖇᗩᗰ 𝗢𝚏𝚏𝚒𝚌𝚒𝚊𝚕𝚋𝚛𝚊𝚢𝚌𝚊𝚛𝚜𝚘𝚗 ❤💪

@tapslagata Жыл бұрын

great tips!! i did all this but love knowing i did it right!

@flagrant-clip Жыл бұрын

@StingerBeeCo Жыл бұрын

Very good information to know!!

@flagrant-clip Жыл бұрын

@unodetailing 3 ай бұрын

Wow this is exactly what we need to know. Thank you very much.

@fukgoogole2 Жыл бұрын

thanks for your video. I found it helpful. I am sure I will have more questions as I dig deeper, but thanks

@L_TLove777 5 күн бұрын

Thank you for the information!

@RockwellSudoxe305 3 ай бұрын

This woman broke it down very simple and makes sense the whole time. I learned so much. You got a new subscriber. Thank you 🙏🏽

@georgeross4384 Жыл бұрын

Always great info

@flagrant-clip Жыл бұрын

@SueLuke1018 8 ай бұрын

Love your channel title! 🙌

@domjones 8 ай бұрын

So helpful, thank you

@ahmadwebb8070 2 ай бұрын

Excellent Info gratitude for sharing

@kellysuefitzharris7786 18 күн бұрын

Thank you so much! loved your helpful videos (and your beautiful, calming office space!)

@al-mubdizahir8704 6 ай бұрын

i love the name. all up in yo business. i love it

@kev2the 28 күн бұрын

Great suggestions!!

@FreshSqueezedLightning Жыл бұрын

Great video as always

@islandgirl5382 Жыл бұрын

Happy to see this.

@flagrant-clip Жыл бұрын

@R.M_construction_LLC 3 ай бұрын

Thank you omg you are the best!

@missramireztr Ай бұрын

You explain this most easy.

@Twister-10228 18 күн бұрын

I have my business account in a credit union cause you have to have a savings account setup when you do a checking account. So the savings account becomes a savings area to hold money for emergency expenses and taxes. Makes easier transfer and move money in the same bank. Checking account is my operation account, cause I operated a small trucking company.

@hannala4098 Ай бұрын

So helpful.. thanks

@natashadebonis 3 ай бұрын

Ty!

@TopQualityIronWorks Ай бұрын

Thank you so much 😊

@LetJesusTouchUrLife 6 ай бұрын

Thank you so much for this video. Despite ALL the wonderful tax advice, the best part of this video was Rocky. ^_^

@Braidxstyles 5 ай бұрын

Thank you

@destoni86 Жыл бұрын

Please turn these videos into podcast...! These videos have great advice

@BuckBowen 2 ай бұрын

Really good advice here. The point about your LLC not existing (depending on tax classification), is a big one. It's both annoying but elucidating. Thank you. I noticed Relay was a recommended bank, and maybe I signed up with them years ago because of one of your videos, but I will say that their customer service is absolutely garbage. If you're reading this, try and find a better "bank" (Relay is a financial institution, not a bank).

@michaldziekonski3162 3 ай бұрын

You are a National treasure !

@charlesjacksoniii8787 10 ай бұрын

I have a business checking and savings account for my business the savings account for taxes the checking for business expenses and to pay myself

@Digilewi1 Жыл бұрын

Thank you for this! Quick question, if my husband is the only one receiving money and paying himself from the LLC, do I need to be a member of the LLC to fully protect our shared assets? If I am a member, then is it considered a multi-member LLC? Thank you!

@candisprinkles85 Жыл бұрын

What is the proper way to pay a bill that is partial business use, such as car insurance or cell phone? 🤔

@HopeProphecy 4 ай бұрын

How would I pay myself in a structure with a single-member holding LLC (S-Corp) that owns my operating LLC, of which I’m the only owner and employee? How can this be done without piercing the corporate veil and losing asset protection, while still seeing the tax benefits of an S-Corp? Which LLC would handle payroll and how would dividends be distributed? Thanks!

@ryanlifematters Жыл бұрын

🔥🔥🔥🙏

@Isabelle-dd3vc 5 ай бұрын

Say more about s Corp taxes, sis

@Angelinesekle 10 ай бұрын

4:18 But if I do put myself on payroll, that will become a deductible business expense? Right?

@huntercutting5643 4 күн бұрын

Thanks for this video, super helpful. Can you/would you address how clients should pay you, in your name or in the name of the LLC when a the client requests a W-9? I ask because The IRS states "if a disregarded entity LLC that is owned by an individual is required to provide a Form W-9, Request for Taxpayer Identification Number (TIN) and Certification, the W-9 should provide the owner’s SSN or EIN, not the LLC’s EIN." The W-9 form allows for entry of the LLC name (line 2). Do I simply fill in the name of my LLC in that line and then instruct the client in parallel (e.g. through contract and invoice) to pay in the name of the LLC?

@jimispeed96 3 ай бұрын

question: Say the business income for the year is $100,000.00 and it is taxed at 30%, that leaves $70,000 for all operation expenses. You pay yourself $50,000 throughout the year, do you have to pay taxes on your $50,000 you paid yourself? Am i taxed twice? (Once on the $100K and once more on the $50K you paid yourself)?

@lorip1435 2 ай бұрын

You will pay tax on your business revenue after business expenses are deducted. That is called your net income. The amount you pay yourself has no bearing on the amount of taxes you pay. Just like she said in the video.

@davidhernandez8184 22 күн бұрын

No, once you pay taxes on the $100,000 anything you do with the money after that is not taxed again, this is why you get multiple banks accounts first acc, is your business acc, personal account, savings acc, your business gets paid $100,000 which you pay say 20% in taxes you put $20,000 into a tax account or saving account, that leaves you with $80,000 you pay yourself $50,000 that gets transferred to your personal account (tax free) your left with $30,000 for operational expenses payroll expenses (if you have employees)

@bradleylivingston6514 Жыл бұрын

so... does that mean for instance, if my business makes $100k in taxable income and I pay myself $50k like your example. Would the tax rate be the 15.3% "self employment tax" on that $100k? & would there be any other specific taxes on that business income on top of the self employment tax? Also, would I then have to pay income tax on the $50k distribution I paid to myself from the business income, or does is that not taxed because it was already taxed as business income?

@KB-pv7lk 8 ай бұрын

You pay a set taxed amount on the 100k no matter how much you paid yourself. You have to pay self-employment, state and federal taxes on that whole 100k. Thats why she said its good to save between 15-30% of your 100k for taxes.

@rosegrace-nyc Күн бұрын

Then your member distrubtion check you have to pay taxes on was well?

@mrshopjulius5840 4 ай бұрын

This is dthe woman who wil be doing this bak when the pademic hit in the America and we look at her video and help me pay mayself from my LLC

@Jesse-ve5oo Жыл бұрын

You're absolutely gorgeous!

@joeytaxes8673 5 ай бұрын

Let me start by saying you have an awesome channel and I appreciate your time and effort. With that buttering up sequence I need to understand the following, If my LLC makes $100,000 and I take a draw of $50,000, on my P&:L it will still read $100,000 before expenses, correct?

@ProfitPotentialConsulting 3 ай бұрын

Correct! The "Owner Draw" account is on the balance sheet so it will NOT show up on your P&L.

@jamesswartz23 4 ай бұрын

do i need to fill out a w4 or anything else and send in? and what about workmens comp, is that something seperate. stressing out trying to figure this out lol

@ProfitPotentialConsulting 3 ай бұрын

If you are a single member LLC and you are the only "employee" you do not need workmans comp. You also don't have to fill out a w-4 as you are not actually paid as an employee! :)

@JayLupe Күн бұрын

Im in texas, single member llc, is there any way to avoid taxes on the withdraw from my business money that i deposit into my personal bank account?

@Skypost4ever Ай бұрын

I paid myself $3k through a transfer from my business bank account to my personal banking account. Put it as a Draw in my accounting software. It that the right way to do it? Also, what percentage should i be taking as my payment? Also, are quarterly tax payments manditory, or just recommended?

@aliu244 2 ай бұрын

I have my nursing agency. It is single member LLC. I am a nurse and physically go out to work from my company. How can I get paid? Do I need to pay a lot of taxes if I pay myself? Can you please tell me ? Thank you!

@ochicoloto3524 Жыл бұрын

Thank you. Can I run an LLC for 5 years without paying myself or taking a distribution? Reinvesting profit for growth

@firstlast4165 5 ай бұрын

Yeah, as long as you pay taxes on your llc’s income you can do whatever you want with the money (including nothing)

@morufatakanni5529 Жыл бұрын

I operated as s corp and have employee that I pay on w2, do I still need to pay myself

@flagrant-clip Жыл бұрын

@KEVINSURIEL Ай бұрын

Another tip you can do is sign up with both your state and federal to deduct taxes automatically from your bank per quarter

@relativelynomadic Ай бұрын

Na, then they just start pulling funds out as they think it should be. Happened to me, never again!

@KEVINSURIEL Ай бұрын

@@relativelynomadic you have to write the amount lol they didnt force me to do autopay without asking the amount. But also you save a late fee end of year

@davidlourenco4662 12 күн бұрын

Is there a best method to pay yourself for retaining liability protection with an LLC?

@adomarc Жыл бұрын

My wife and I have a single member LLC. We paid for some business expenses with our personal credit card before our business card came in. How do we reimburse ourselves from our business bank account? Do we need to categorize the reimbursement as something specific? We'd like the expenses to be tax deductible as opposed to an owner distribution. We use Wave for accounting.

@juliantorres3887 9 ай бұрын

Hey have you gotten any answers on this? This is my exact situation. Had to pay for start up costs with personal card and now I want to reimburse myself without it being taxable income for myself and with it being an expense rather than an owners draw.😅

@adomarc 9 ай бұрын

We take money out of the business account to pay expenses made with personal credit card. We mark the cash flow out of business account as an expense and attach the receipt. @@juliantorres3887

@eso1666 2 ай бұрын

I’m not a tax expert but I think you can deduct this in your schedule C as a business expense. Keep asking to get the right answer but I would do it myself

@RNDiva33 Жыл бұрын

Can you still claim a business loss if you have not generated any income? For example a lot of people who are in the bath and body business tend to take a loss because things expire.

@flagrant-clip Жыл бұрын

@bigwaveboats6731 Жыл бұрын

I just need to watch your videos next month when we take our ski trip to CO…maybe I could write my trip off to see my attorney. 😂

@flagrant-clip Жыл бұрын

@thetrout529 5 ай бұрын

How about the other way…..How would you put money into your llc and document that correctly and do it in a way that still keeps liability away.

@ProfitPotentialConsulting 3 ай бұрын

Any money you put INTO your business is an "Owner Contribution". This is NOT considered income for your business just like an "Owner Draw" is not considered and expense!

@LJYouTube1981 Жыл бұрын

Should Realtors get an LLC or does it really matter.

@flagrant-clip Жыл бұрын

@ORC409 Жыл бұрын

What if your a chump like me, its your 1st year in business and you made less than 50k?

@flagrant-clip Жыл бұрын

@a87nomsirrah35 Жыл бұрын

She is really milking this vocal frryyyyyyyyyyyyyyy-YING

@Darkeiser.7 6 ай бұрын

Why is there not a strict percentage??

@ProfitPotentialConsulting 3 ай бұрын

There's not a strict percentage because everyone's tax situation is different. Since as a SMLLC you are taxed at the individual level, it flows onto your personal tax return and everyone has a different tax story. So somebody who is married with 5 kids will have a different amount to save as someone who is single with no kids. It will also be different if you also have a w-2 income in addition to your business income!