If you have an LLC - how are you paying yourself?

[eqttrdr]

I am NOT asking for advice here...

Just wondering if YOU have an LLC set up by yourself or with a partner how are YOU going about paying yourself and reporting it on taxes?

Draw vs year end distribution? Salary?

Why do you do it that way?


Would love to know.

thanks!

 

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[healthstatus]

One of my companies is a Sub S, which I think is taxed the same way as an LLC. I take a salary for about 60% of my income from that company, then distributions from time to time for the rest. My accountant told me it was an audit flag if you took greater than 50% in distributions (unless the salary portion you took were over the cap for social security taxes)

 

[Trivium iz rC]

Both my businesses are LLC's & are taxed as an S-Corp. My tax guy said the same thing that health status has said but I do 50% salary then 50% in distributions.

 

[Kak]

I just move the money out that I want to have in my personal account. I let my accountant deal with the rest.

 

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