How to Pay Yourself in a Single Member LLC
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- Опубліковано 27 лип 2016
- In today's video, I share with you the proper method to pay yourself if you own a Single Member LLC. Single Member LLC's are one of the most powerful and flexible legal entities that most online entrepreneurs use to protect not only their business, but also their personal assets.
However, if you don't set up the LLC properly, it won't provide you any protection at all.
Today we talk about how to pay yourself if you have set up a Single Member LLC. This will be especially helpful for you solopreneurs out there who are building businesses on the side.
I've written a more in depth blog post on this issue at my website:
bit.ly/2a2GMYy
Some of the links below are affiliate links. If you purchase through these links, it won't cost you any additional cash, but it will help to support my channel. Thanks!
To start your own LLC, click here: hawthornlaw.net/incorporate
Click here for an operating agreement template that you can use for your LLC: www.hawthornlaw.net/llc-operating
If you need to get a hold of me, you can schedule a call using this link: www.hawthornlaw.net/consult/
*Unless you are a legal or private coaching client, I do NOT respond to emails or contact form submissions.*
To sign up with a payroll service I use and love, click here: hawthornlaw.net/payroll
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This video is for entertainment and informational purposes ONLY and should NOT be considered legal advice. By watching a video or commenting on a video, we are not forming an attorney-client relationship. If you need specific legal advice, please ask an attorney in your state.
Thank you for watching! I just announced a new FREE training that reviews the exact 10 Step Process I use for starting an Online Business: www.obfoundations.com/10steps
Can you create a LLC when you are a stock market trader?
Aw man very good video thanks
Can you go over how you pay yourself in an "S Corp" scenario?? I know you did a talk for the Single Member LLC.
Thanks!
Hawthorn Law In a single member LLC are you tax on gross sales or,
after all business expenses, net sales?
If your LLC gets a fine, and it bankrupts it, what is your personal liability?
Your videos are very informative and straight to the point. Thank you so much for helping us small business owners, I also appreciate the simplicity of your explanations. I never leave your sight wondering... and for whatever reason if I do have a question, guess what? You made a video for that too
Awesome videos!!! Quick, clear, and to the point. Really appreciate this advice! Especially from an attorney!
Excellent informative video. I like how you mentioned a threshold for S corp netting etc. Many people will start to learn from this video.
I really appreciate you speaking about Profit First, I think it's a book/syster everyone should know about.
I’m so glad I found you! Thank you so much for your videos! They’re very helpful
great stuff man. thanks. as a newly LLC i will definitely consider this as well as your business.
So, this is why I was having to file quarterly. Thank you for the education. Great video!!
thank you for speaking clearly and staying on point, you're awesome at explaining this. keep it up :)
Due to your recommendation, I purchased Profit First. Thanks for this great info, and the solid book recommendation.
Yeah - it's a good one!
1:30 that's a check. Slow down I'm taking notes...
I am still waiting on you finishing the notes
thank you for taking your time and sharing this information I do appreciate it.
Thank you. You just confirmed that I need an accountant
good answer.
Thank you so much for all your great information! I will definetly consider booking a call with you as your fee is very reasonable, and you are knowledgeable and sincere. I just formed a single member LLC and yes its for ECommerce.
talk to a local CPA as soon as possible. You will probably have to collect sales taxes on the sales in your state. That means you need to register and file sales tax reports.
Thank you for this super helpful video! I'm doing research on LLC's. Your video popped up on my home page.
Great video! Thank you so much for the break down of accounts! Love the sip at the end too lol
You're welcome!
Got an LLC for a t shirt business, I’ve been too busy to get started. Since I’ve bought the equipment little by little and I work 70 hrs a week. I don’t know what to file since I’ve actually not made any money yet.
did your biz succeed?
How has your business performed?
MAN, I COULD HV LISTEN TO U ALL DAY ON DAT NOTE !¡
you guys have to keep posting, much more about Corps etc
I’m still confused. 🤪
Hot damn! I'm definitely calling you when I need help. I live in FL!
Thank you so much for the information I so needed that course!
Wow, Jim, I'm very glad that I chose your video. You are very informative. I might have a few questions.
Here maybe within a few days or so. But I am trying to start my own LLC
Business.
Glad it was helpful!
thanks for your video I just switch my company from S-Corporation to Llc . I was told Llc is better.
Thank you for this video it reminded me of back in 1992 when I began working in the computer industry I wanted to incorporate and looked around at various ways to do that. I was at a meeting with the IRS where a fellow engineer had formed a K Corporation and it was the worst thing he could have done for various reasons, mainly Healthcare options. I then began to do research for the companies that I would work for and I found some striking similarities that Intel, Oracle, IBM, Microsoft, McAfee, all of the Silicon Valley companies except Hewlett-Packard back then were C corporations based in Delaware. I found a place that would incorporate me as a C corporation for $300 and I Incorporated. It was a great learning experience I will also never forget the day that Intuit threatened to sue me when I reverse-engineered their QuickBooks Pro database to fix a bug in their program regarding employee training tax! The other humorous moment that sticks in my mind is when my contract at Intel had finished and I went to collect unemployment at the local EDD office she asked me what happened I said those horrible corporate moguls let me go! We then commiserated for a few minutes I didn't have the guts to tell her I was talking about myself! Even though I realize now there was some minor double taxation which I minimized it was still a great ride!
Amazing video… Thank you so much for this really insightful information! God I needed to hear this❤️💯👍
Thank you very much for the information in this video.
I'm listening, keep it coming, thank you! !
Thanks!
Thank you Sr for all that great information, has been really helpful!!👍🏽
Great advice Mr. Hawthorne. I always thought about paying myself and I didn't know how to now I know.
BIG DICK WILLY d thanks but no thanks. I'm doing very well!
She's a cutie
Havi Por Aqui thanks
Thank you!
i wish there was a way to pay yourself distribution through intuit payroll. Great content and straight to the point man. Worth subscribing for sure.
I think you can do that too. I was just illustrating how easy it is to pay yourself with an LLC.
Very informative video and helpful tax tips on doing this as an LLC vs. a S-Corp.
Could you make a video about LLC file taxes? such as payroll taxes? thank you
Hong Sok There is no need for payroll taxes if you're paying yourself in a single member LLC.
they better not have a c corp lol that would be horrible haha s-corp would be good though
Honest Sok
If you elect S-Corp status you may need to pay yourself a salary.
Hong Sok I would like to know as well
This is so so helpful thank you !
You are very welcome!
Great information and thank you!
5 seconds into this video, love it already "hey there party people" haha ; thanks for advice in rest of video!
Welcome aboard Gabe S! I just want to let you know that if you have any questions or a topic that you want me to make a video about, just include the hashtag #hawthornlaw in your comment and I'll see what I can do!
If you haven't already, please check out my channel to see all of the topics that I have covered so far:
ua-cam.com/channels/6t5e6r-JEVoz_yn6SdvLRw.html
I look forward to seeing you on the channel!
Love the videos keep them coming, just joined the notification squad
Thanks Tammy! I’ve been taking some time off this summer but will be back at it when kids go back to school!
that intro tune is LIT!!!
Thanks man. Great tips!
Thanks. You make me feel better. I thought I was ripping myself off on my taxes by not having a s corp for all these years. 35k to 50k net income is reasonable salary at the minimum. Nobody else has that answer. 👍🏻
You're welcome Jeff! Thanks for the comments.
You are the man 👍🏾
thanks for the valuable information!! may you consider doing a video on How to Operate a small business as a veteran owned business??
Thanks for this great information it’s really helpful. God bless you 🙏😊❤️
Awesome video thanks! I subscribed.
Thank you by the way. Appreciate the information!
Thank You Very Much, Brother, Good Stuff!!!!!!
You're welcome!
Very helpful info. Thanks for your time on this matter!
I've learned a lot and I recently am a new subscriber. I noticed a lot of times in your videos you talk about S corporation and LLC I'm not sure what really those mean or if they're any different from regular incorporation or regular proprietorship.. I would like to have more details on what these letters and types of businesses are.
VERY Helpful! Thank You
You are welcome Austin!
Thanks a million!
Intro is the best.
Thanks for watching Richard Lorion! I appreciate it!
Thank you!
Very useful Info. Direct to the point.
1) What apps do.you recommend in tracking expenses & tax obligations when doing online businesses such as ecommerce, Amazon FBA, POD, Affiliate Marketing?
great info. thanks a lot for making those videos
You're welcome!
Hi Jim. First, thanks for all your informative videos! I've learned a lot! Secondly, while you were discussing that 'profit first' method, you spoke of categories how you could safely manage all money coming in. I caught the 30% for op expenses, and the 3-6% for taxes, i think it was. What are the other recommended categories? Thanks again!!
Great useful info presented clearly! Thanks
THANKS THIS HELPED
Great info - thank you for the video!
Good stuff thanks man
great video.
Awesome Video!!!
So the LLC needs to have 3 business accounts: Expense, Taxes and Profit. To avoid a high tax on all profits, what is needed?
Great awesome video 👍
Thank you for making these videos. I'm in the process of buying a bunch of books (including Small Business for Dummies), watching a bunch of videos and generally informing myself to the best of my ability in preparation to form a business. This type of content really helps me. I gave the thumbs up!
very good, let's hear about, How to Pay Yourself in a S Corp.
Cool intro. Great video, thank you.
Love your videos
Thank for you video.
Thank you for this wealth of information. Is it ever better to choose sole proprietor status? What are the benefits of choosing a sole proprietorship?
such good info thank you
Great info!!
Awesome videos and info. You have a new subscriber!
Ok. I was able to follow .Thx
Thanks for watching Y. Voghn! I appreciate it!
This is a good one!
Thanks!
Thanks
Thank you sir! You were very helpful. I needed someone to break down how to pay yourself...not knowing what items should be withheld; taxes, owners profit. I am very new to running my own business. Are there forms out there that will help you see what percentage you should be withholding? Or samples to learn off of?
Good Stuff Brother, Thank You, straight to the point.
You're very welcome!
Thank you Matt Damon
I guess they cut out the fighting seen.
Useful information
Wow. I paid a guy $300 for this info a few months ago. Smh 😩
br3wskee 🤫🤫🤫🤫🤫
Yeah that's accountants for you every minute is billable.
Evil Ghandi dude why are u mad
@Evil Ghandi Well they might as well be fast food employees cause they just got this info for free. So the $300 might not have been worth it.
@Evil Ghandi I understand free market and that's why this dude on youtube giving free advice quicker and better than what a scheduled in person, and potentially unhelpful appointment is. I want more market competition with lower prices and better service so that would be a no for Biden. Nothin for nothing. Don't worry I'll still be paying my competent accountant a nice fee for his expertise this april. Not trying to discredit but there are some situations where free UA-cam is better and others where you need the pro no doubt.
great info.
Thank you very informative
Glad it was helpful!
Thank you
Thanks for sharing
Thank you for posting all this ..I just formed my LLC I sell food and I really need as much info on how to run the business side of things ..thanks again
Thank you Otis! What specifically are you looking for information on so I can try to answer more of your questions?
@@jimhart mostly the tax stuff I'm trying to understand the tax stuff in California
I'm guessing you have a lot of regulations that you need to be aware of selling food in California.
Hey thanks so much for these videos. I am starting a Epoxy countertop and Table business and I'm using Legal Zoom to get my paperwork completed. But I have no idea how to pay myself or how much. Also, my expenses will largely be materials from Home Depot and an online distributer. Should I get a business credit card and then pay from my business account every month?
thank you
Super helpful.
So for an LLC, since LLC has to pay self-employment tax of 15% on gross income, with the way you allocate money into 4 separate accounts described in this video, which I think is a great way to do it, besides allocating that 20% of 30% of your Expenses account for paying tax, shouldn't we add another 15% for self-employment tax? Thank you.
Hawthorn Hacks.... that’s a good name for your show
Just sub. Love your info
That into music was cool
I am a single member LLC for a rental property. When the rental income goes to my business checkings and I write a check to myself, will I get taxed for that at end of year?
great videos
New subscriber thanks so much!!
Thank YOU!
ty
Super helpful
A lot to consider.
Great information.
Thanks Dave - Appreciate it!