How To Pay Yourself (And Taxes) in a Single Member LLC
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- Опубликовано: 8 фев 2025
- Do you own a Single Member LLC in the U.S.? Want to know how to pay taxes and pay yourself as an LLC owner?
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In this video, I cover the very important topics of:
How do I pay myself as an LLC owner?
How do LLC owners pay taxes?
Which tax return form do I file for my LLC?
All this and more!
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It is amazing how you can watch so many videos and still be confused because other creators try and cover too much. I just wanted to know about single owner LLC. Nothing more.. and this video was the first one that make it clear and simple.
I’m on Social Security and Medicare. The thing that happens is yes we got a three point whatever percent increase last year but my Medicare part B payment also went up by $60 a month more than my cola so I actually took a $60 a month cut. I literally made best decisions when i started working with an advisor
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@@DarnellsStevenses I will give this a look, thanks a bunch for sharing.
Finally someone makes it easy and understandable for all us single LLC entrepreneurs. Hiw many videos i had to go through to get to one that finally lays it out clearly. Can't thank you enough, huge cheers.
I was dreading how complicated this could be....but conceptually, you made this pretty understandable. Thank you.
Glad to hear!
oh my god this is the best explanation and most simplistic example that you could use. I really learned a lot and appreciate how easy you make it for us new business owners to understand !
Thank you sir. Recent LLC business owner and trying to figure things out, this helped alot. Thank you!!
Thank you so much for this!
I made myself an "employee" with my single member LLC and was paying myself as an employee and having taxes taken out that way.
Thank you for this explanation!❤❤❤
Well - if you are taxed as a sole proprietor - not an S Corp - I’d ask your tax professional to assess this. Owners of single member llcs are not employees and cannot receive a w-2 paycheck!!!
@@ChadPavelcpaso can u write yourself checks if it is S corp as W2?
My three favorite channels: Charlie Chang, Stock Brotha, & How Money Works. Make my week complete!
One of the best and simplified videos Ive seen on this topic. Thanks Chad. keep putting out good info.
You just cleared up so much for me, literally wrapping up 1st year and you answered so many questions I had thank you
I am glad this helped - check out my 2022 video update on schedule C too. Thanks and good luck 👍
Thanks!
Love this explanation! I can’t tell you how many videos I’ve watched & this is only 9 mins too. You kept my attention & taught me something valuable & extremely needed & helpful thank you 🙏🏼😎👍🏻
There is the answer i was looking for ,not only paying yourself but filling taxes
Hello, I am a Corporate Accountant with 30+ years of experience, and now I'm launching my own online business. Your straight-forward approach is greatly appreciated!
Congratulations on launching your business!
This was the most simplistic explanation I have seen on paying yourself from an LLC. Thanks!
Glad it helped
This is the BEST, most straightforward explanation that I needed! Thank you!
Glad this helped.
I need a way to draw up a plan to set up for retirement while still earning passive income to meet my day to day need and also get charged lesser taxes even while in a higher tax bracket.
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pls how can I reach this expert, I need someone to help me manage my portfolio
*Jennifer Leigh Hickman* is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.
Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.
Thank you for taking your time to explain in such a simple and easy way to understand.
Finally , I can understand this , simple but very very informative.. did not exaggerate once or try to flex “big words”. Thank you bro .
Glad this helped!
You've clearly made this video for lil ole me. Thank you!
😍
Great@
Thank you for making this so easy for me to understand. I have paid taxes for the entire 5 years I have been operating but NO ONE has explained this part. Thank you
Great video, had to just watch once (at 1.25x) and I already have much better understanding on how to manage payments and taxes as a single member LLC. Thank you so much!
Wow, just write yourself a check...thanks for clarifying how easy it is to pay yourself from a sole proprietor LLC!
This is extremely helpful for RUclipsrs, Streamers, and other creatives that make a steady income and open an LLC for the liability protection. Would love to hear you talk more about how to do quarterly estimations, actually pay taxes, and how to reduce tax payments.
Thank you! We have more content coming that addresses these items, coming soon!
Great question!
You need to do some more research my brother…
Phuong tran
Thank you so much. This gave a great template to look at. I was more or less gifted my dream business very suddenly and I’m trying to figure it all out. Thank you again
Glad it is helpful to you. Good luck with the new business!
This was amazing! Very easy to understand for beginners the way you broke it down… THANK YOU
Thank you!
very clear and to the point , you are the first video of many I have watched that gave it to us straight (Just the Fact) , Many thanks
Chad. Your excellent man. You made it very simple and saved me from unnecessary headaches. You are awesome. Good luck
Thank you glad this is helpful
Thank you so much for putting this out and not taxing people for the info. God bless you keep going there are only roughly 650,000 CPAs in the country. Your a rare breed and in high demand.
Thank you Get more help here: pinewoodtax.com/
2022 tax update for you!! Single Member LLC Taxes, Estimates, and How to Pay Yourself (2022 Update!)
ruclips.net/video/lLwZ6VAttpQ/видео.html
Brilliant video. I'm doing the "side hustle" setup, and your explanation and sketch of the forms made everything clear. Thanks so much!
Jackson I am glad this helped! All the best to you!
See update video here Single Member LLC Taxes, Estimates, and How to Pay Yourself
ruclips.net/video/lLwZ6VAttpQ/видео.html
Thanks Chad, LLC newby here, your video was clear and easy to understand.
I have been looking all over for this information thank you for making it so clear.
Glad it was helpful!
@@ChadPavelcpa Ok so your gonna pay quarterly taxes on your LLC profits? And at the end of the year you file and do a pass thru-so schedule c to 1040? Does that sound about right?
This video is amazing. You answer my question so simple. Thank you! Finally after going through so many videos
Literally asked everybody I knew in business how this process works and never got this clear of an answer. Thank you so much ✌
Glad this helped!
That's true talk unhelpful
2022 update for you! Single Member LLC Taxes, Estimates, and How to Pay Yourself (2022 Update!)
ruclips.net/video/lLwZ6VAttpQ/видео.html
Thank you, I have been saying for a while now that someone needs to explain this like I was 5 years old. I think I understand now.
Quite helpful and easy to follow. Love that you added the visuals. Cheers!
Thank you!
See 2022 update video: Single Member LLC Taxes, Estimates, and How to Pay Yourself
ruclips.net/video/lLwZ6VAttpQ/видео.html
Basically it doesn’t matter how much distribution you take out at the end of the year you have to pay for the entire net profit. Even if you haven’t taken it out yet.
Good video!!
Correct - thanks!
See update video here hot off the press! Single Member LLC Taxes, Estimates, and How to Pay Yourself (2022 Update!)
ruclips.net/video/lLwZ6VAttpQ/видео.html
Most informative video ive come across on this subject. Thank you.
Awesome great information! Thank you so much and also make a video for foreigner owned single member llc tax planning 😊
Thank you, this topic is on my list!
THANKS, VERY CLEAR AND EASY TO FOLLOW
Amazingly easy to follow. Thank you for the information!
Well explained and easy to understand. Super helpful! Thank you!
This is an amazing video man, thank you. .Simplicity is king
Glad this helped! More on the channel and updates coming soon.
Thank You, Thank You for this video!! I still barely know what I am doing. I am going to watch the next video now.
I am not great with numbers at all.
My husband and I just started an LLC and my job is the “books”. He’s not getting paid until I figure this out 😂😂.
He might be homeless soon lol!!
Thanks again!
Hope the videos help!
😂🤣😂🤣
See 2022 update: Single Member LLC Taxes, Estimates, and How to Pay Yourself
ruclips.net/video/lLwZ6VAttpQ/видео.html
Great video, thanks for help. I just started my own llc and freaked out about this topic but you explained it well
Glad to help!
Awesome! Thanks for making this so simple. I was having a hard time getting that simple answer elsewhere
This is a fantastic video. It's clear and easy to understand your explanations. Thank you for providing this information.
Amazing video. Explained every question I had
Chad, could you make a video for people with a single Member LLC living outside the US? For lots of us that would be awesome! Thanks!
Simplest explanation that I was able to follow
Awesome explanation!! (the music was very distracting for me.... had to try really hard to tune it out) But really, Thanks for the education!
You pay taxes with your schedule c, and the IRS extracts from that single payment a state income tax, medicare tax, federal income tax and social security tax. Use an llc tax calculator online to find your taxes per state and net income amount.
Calculator always a good idea. You pay state taxes on your state return 1040. But yeah it’s all the same format and similar calculations. Thanks.
Thank you, Chad. Great information. Very helpful.
Thanks glad to help!
Love the white board, it made everything so simple. Thank you!
Glad you enjoyed
See 2022 update! Single Member LLC Taxes, Estimates, and How to Pay Yourself
ruclips.net/video/lLwZ6VAttpQ/видео.html
Great content and way to stay on topic. Very good! Also, your penmanship is somehow worse than mine, didn't think that was possible! 😉
Thank you just beginning to form. I want to have all my operations in order.
Good luck to you.
Great explanation. Thank you!
Thank you hope it was helpful
Great video ! Clear and to the point !!
This information is gold! Thank you for sharing.
Glad it was helpful!
Vey information video. Thank you so much for posting!
Extremely Helpful, but it would be great if you could explain a NON-Resident Alien owning an LLC
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!
You are the man! Thanks so much for the great explanation.
Thank you glad it helped
See 2022 update video: Single Member LLC Taxes, Estimates, and How to Pay Yourself
ruclips.net/video/lLwZ6VAttpQ/видео.html
Thank you for making it so simple to understand.
Glad it was helpful!
Very good, easy to understand video. Thank you!
He said you put 200k in your business account, you spent 100k to run the business and you left with 100k profit… How is that “profit”?? It’s not profit if it’s not extra money from what you initially put in, that’s the same 100k you initially put in how is it profit? Somebody please explain
$200k is from customers in this video. Revenues.
@@ChadPavelcpa got it! Thanks !
What awesome information. Thank you!!!
Glad it helped!
This is now my favourite video. :)
Thanks!
See update video here! Single Member LLC Taxes, Estimates, and How to Pay Yourself (2022 Update!)
ruclips.net/video/lLwZ6VAttpQ/видео.html
Finally a video I understand THANK YOU
Thank you! Look for an update video coming soon
See update video Single Member LLC Taxes, Estimates, and How to Pay Yourself
ruclips.net/video/lLwZ6VAttpQ/видео.html
You made this so simple! Thank you:)
Glad it’s helpful.
Well explained! Best video on RUclips so far!
Thanks glad to help!
Here is a 2022 update for you! Single Member LLC Taxes, Estimates, and How to Pay Yourself (2022 Update!)
ruclips.net/video/lLwZ6VAttpQ/видео.html
Thank you! Exactly what I needed to know.
Glad it helped!
Omg love love this! This was so clear! I actually understand this. Thank you so much 🥰
Glad this helped
This was very informational and answered a lot of questions I had.
Great! Good luck build your legacy!
Great information! 👍🏾
See 2022 update Single Member LLC Taxes, Estimates, and How to Pay Yourself
ruclips.net/video/lLwZ6VAttpQ/видео.html
Thank you this was extremely helpful
Glad it is helpful!
The one thing he needed to go into was making regular tax payments on profit. How often, when, how?
Excellent video. Very clear and understandable.
Super relieving to watch.
Glad it helped.
great video...however...the to drill it down even further..WHETHER OR NOT YOU TAKE MONEY OUT OR LEAVE IT IN THE BUSINESS...you will still have to pay taxes on the PROFIT...passed through to the personal federal tax return...and state tax return. You cannot avoid paying taxes...either you are paying throughout the year...the estimated taxes...or at the end of the year...when you do your taxes...tricky part is having the money available when taxes are due! This is how most small businesses get into tax trouble. 100k is awesome but calculate 20% off the top ( and thats verrrry generous) from the llc alone...and you have a better idea of your tax liability...before the tax man cometh...and trust me my friends..he is coming. 🦋❤️
Yes all great points.
Good video but unless I missed it, there is the Self Employment piece of the tax return that wasn't addressed. Thanks
About to start a travel massage therapy business and boy am I OVERWHELMED.
I had an accountant tell me to write myself a physical check or use to use zelle, but to not simply transfer money from business checking to personal checking, that doing so could pierce the veil.
Interesting position. I am not an attorney. But with proper bookkeeping documentation I don’t see issues with how one pays themself.
Can you do a comparison from the perspective of having an LLC vs not having an LLC? I'd love to see how it directly effects the amount of taxes paid.
Thanks for your question. The answer is: there is no difference. Sole proprietors and single member LLC owners follow the same tax laws and file the same tax return (schedule C). The real tax differences come into play if you add a second owner to an LLC or choose S corporation tax status on an LLC.
So staying a single member llc is more beneficial than switching to a s Corp?
@@Stealth79761 In the right situations S Corp provides more tax benefits. But s corp
Taxes are more complex so you’ll have to weigh the options.
@@Stealth79761 see above comment follow up
Thank you for putting this video out!
Hey Chad awesome video! I’m a New single member LLC also and I’m trying to figure out all the tax requirements and deductions I need to be aware of, I’m a videographer/Photographer and I would like to know what form to file since this is my main source of income. Also typical deduction for camera gear, mileage, and other travel expenses.
This video was really helpful I don’t quit have the capital to hire an accountant or CPA but I am going to sign up for quickbooks to manage everything.
Hello! See our full video + blog post here, new video just came out today expanding on this exact topic: pinewoodfs.com/blog/self-employed-schedulec-taxes
Sweet thanks I definitely will look at it !
Also should I do an S-Corp to get away from paying Self employed taxes I just have a basic Single member LLC currently.
@@TCOMold once your net income exceeds $50,000 for the year and you intend to grow it beyond that then S Corp could make sense - but not always. But it comes with more cost and complexity: payroll, potential state corporate income tax, a separate tax return, and other corporate filings and actions. All of which have a cost and compliance to deal with. So self employment tax is only one consideration out of the many...I wouldn’t worry about S Corp until you have good profits and want to take on the additional s Corp overhead - then you can save thousands on SE tax.
Hi, so if I write a check to myself from the business will that be the same deduction like paying a bill or buying something for the business?
Thank you for the explanation
Thanks!
Very helpful. Thank you.
Thank you for this video!🎥 easy to understand!
Thanks an update video coming soon!
See 2022 update here: Single Member LLC Taxes, Estimates, and How to Pay Yourself
ruclips.net/video/lLwZ6VAttpQ/видео.html
Thank you Chad, your vid is awsome !
Glad you liked it! pinewoodtax.com to get more advanced help.
Thank you! This is the exact info I needed
Thanks glad to help!
This was very helpful. Thank you.
Glad! pinewoodtax.com to get more advanced help.
Tax update for you! Single Member LLC Taxes, Estimates, and How to Pay Yourself (2022 Update!)
ruclips.net/video/lLwZ6VAttpQ/видео.html
This video was very helpful
perfect so simply explained
Glad it was helpful!
Here is a 2022 update! Single Member LLC Taxes, Estimates, and How to Pay Yourself (2022 Update!)
ruclips.net/video/lLwZ6VAttpQ/видео.html
Suggestion: I like the information, however, get rid of the background music, it is distracting and harder to focus on your words.
I agree I dislike the music turn it down please
The music is very distracting. I have to make more effort to focus.
Or you have to transfer it on monthly basis
Pay yourself / transfer / draw, all same thing. Pay yourself every day, week, month, doesn't really matter.
So let’s say of the $100,000 you made in profits, you pay yourself $20,000 through owner draws. You don’t have to pay additional taxes on the $20,000?
You did not explain explicitly where the money comes from when an LLC owner writes a check to her/himself! $200,000 revenue, $100,000 expenses, $100,000 profit: against what part of the business finances is the check written? Where is the money for the owner's draw check coming from? Is it part of the expenses? Does it come out of profits? If so, please say so, so that it's clear. Also, your explanation of how the owner pays taxes was not clear. I needed to hear explicitly that the owner's draw is not taxable on the business income, but it IS taxable on the owner's personal tax return. I had to look at another website to be sure. Thank you for making the video.
Owner pay (draw) is not a tax deduction. I explain it in more detail in this new 2022 video update: Single Member LLC Taxes, Estimates, and How to Pay Yourself (2022 Update!)
ruclips.net/video/lLwZ6VAttpQ/видео.html
Great video sir
Thanks!