LLC/Business owner questions.....

HandleX

Thread Starter
Joined
Mar 18, 2006
Messages
388
I currently stepped into creating and owning an LLC which contracts a lot of work as consultants and my company gets paid for it.

There is no employees as I am the only one in the LLC. Everytime i get paid, i see to it that the companies write there checks to my company which then gets deposited into my company bank account.

My question, how do i pay myself? When do i pay myself? How much do i pay myself?

I mean, the whole purpose of the LLC is because i pay less tax on my income, but if im writing myself checks .... arent i in return just paying tax on what i take out then?
 

Drabdr

Brad
Moderator
Joined
Nov 26, 2007
Messages
12,882
I would suggest that since you used a lawyer to set up your LLC, they (or your accountant) would be the most qualified to answer your question. There are multiple ways to set it up where it minimizes the taxes paid by you, and still retains the company protection.

In general, I would think your company should pay corporate taxes on the money that it makes.

Then, you would pay yourself a salary, that you would then pay individual income taxes on.

Like I said, get with your group, and establish an approach. This should include optimizing all of your expenses within the company.
 

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